Producers Can Expect Payment Reductions Due to Sequester

Producers expecting a program payment from the Farm Service Agency will see a smaller dollar amount in their checks for fiscal year 2014. The automatic spending reductions, known as sequestration, will reduce payments for producers who participate in one of 11 FSA programs affected by the sequester. “These sequester percentages reflect current law estimates; however, with the continuing budget uncertainty, Congress still may adjust the exact percentage reduction,” said FSA Administrator Juan M. Garcia. Garcia said the announcement intends to help producers prepare for the impact of sequestration cuts in fiscal year 2014. Learn more.

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2 Responses to Producers Can Expect Payment Reductions Due to Sequester

  1. Vivian Soffa says:

    It is puzzling to me that some federal payments are sequestered and some are not…for example, FSA NAP payments for growers suffering severe drought are delayed and reduced, while other payments are unaffected, such as EQIP and many other USDA program payments. The process seems be more discretionary than ever.

  2. Katie Delbar says:

    I agree with Vivian, and the disaster programs such as NAP that are in place to help producer are being cut. Yet we don’t hear about producers with crop insurance taking the same cuts. Also the delay in payments hurts the producers who have paid for the coverage in the first place. It makes no sense.

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