June 3, 2021
After a lengthy delay, President Biden released the details of the administration's F.Y. 2022 budget request.
The $6 trillion budget complements the investments proposed through the American Jobs Plan and the American Families Plan. Significant emphasis is placed on improving education, tackling climate change, and expanding economic opportunities for agriculture.
The budget provides $6.3 billion for commodity program payments to maintain an effective farm safety net. Commodity programs are critical components of the farm safety net, providing risk management and financial tools to farmers and ranchers. Approximately 1.8 million farms are enrolled in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs, which are helping cushion the financial strain felt by producers due to continued low prices for many commodities.
The budget includes $1.105 billion to protect agriculture from pests and diseases, address sanitary (animal) and phytosanitary (plant) trade concerns, and enforce animal care legislation. This includes programs that support the U.S. field crop, cotton, forestry, livestock, poultry, and specialty crop industries. Of note, the budget maintains the USDA’s ability to transfer funds to address emergencies.
The budget provides $9.7 billion for the Federal crop insurance program, enough to provide crop insurance coverage for $121 billion in crop value. Crop insurance offers farmers and ranchers a means to effectively manage their risk through difficult periods, helping maintain America's safe and affordable food supply.
The budget includes funding to fully support the estimated $10.4 billion demand for farm loans, providing loans to an estimated 52,000 farmers and ranchers to finance operating expenses, refinance debt, or acquire a farm. In addition, the budget provides $33.7 million for the Heir's Relending Program, authorized in the 2018 Farm Bill, to resolve ownership and succession of farmland.
The budget includes $235 million for the Foreign Agricultural Service to reduce trade barriers that disadvantage U.S. agricultural exports and to open new markets for U.S. farm products. The value of agricultural exports resulting from participation in foreign food and agricultural trade shows and missions is expected to reach $2.13 billion.
The budget includes $2.3 billion for the Conservation Reserve Program (CRP) to protect up to 25.5 million acres of environmentally sensitive cropland and grassland. In addition, $1.85 billion is included for the Environmental Quality Incentives Program (EQIP) and $450 million for the Agricultural Conservation Easement Program.
Enhanced Conservation Programs to fund the President's goals and legislative proposals include: (1) increased funding for EQIP to address drought resilience; (2) increased funding for RCPP for net-zero agriculture technology initiatives; (3) increased funding for the Watershed and Flood Prevention Operations Program; and (4) increased funding for the Healthy Forests Reserve Program as part of a net-zero technology initiative to encourage land and species protection and restoration.
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