Economic Storm Worsens for America’s Farmers

Severe weather, high expenses and global uncertainty are hitting farmers from all sides, squeezing them to the breaking point. Fifty-four agriculture groups laid out the challenges facing rural America in a letter to President Trump today.

The letter recognizes progress made last year in enhancing farm risk management tools and securing much-needed tax relief for farmers, but says additional resources are needed during these turbulent times, "As the administration considers a defense supplemental package in the coming weeks, we urge you to include much-needed market relief for America's farmers."

That relief should build on recent efforts to deliver Farmer Bridge Assistance Program payments, and should include meaningful support for all specialty crop, sugar and alfalfa growers, assistance for farmers and ranchers dealing with catastrophic weather events, and build longer-term demand stability for U.S. agriculture through year-round sales of E15 and tax incentives to increase use of domestic agricultural products, such as the Buying American Cotton Act and the Grown in America Act. The letter mentions administration actions, such as finalizing strong Renewable Volume Obligations in the Renewable Fuel Standard and supporting value-added opportunities for farmers in the 45Z Clean Fuel Production Credit, that will also help support longer-term demand stability for U.S. agriculture.

The recent closure of the Strait of Hormuz and its impact on fertilizer and fuel prices only worsened the financial strain farmers face and poses significant consequences for the food supply chain in America and around the world.

"We appreciate your longstanding commitment to rural America. Now is the time to ensure that American agriculture can weather this period of extraordinary strain. Without timely assistance, continued losses risk accelerating farm closures, reducing domestic production capacity and weakening the ability of farmers and ranchers across this great nation to provide food, clothes and fuel for the American people."

Read the full letter here.

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Mike Tomko
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Bailey Corwine
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(202) 406-3643
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