In March, Congress authorized a $19B bailout for farms. Data suggests the bailout has favored large, industrialized farms over smaller, diversified ones, provides loopholes for corporate farms, and has sent sizable payments to foreign-owned operations.
“I don’t see it as a situation where the Secretary really understands and supports the diversity of American agriculture,” said Sen. Debbie Stabenow, D.-Mich., ranking member of the Senate Committee on Agriculture, Nutrition, and Forestry, who helped negotiate the C.A.R.E.S. act language for agriculture.
But critics contend there are also flaws in the formula that cause it to exclude less traditional operations, like local farm systems and niche fruits and vegetables. The formula is not based on lost income, but rather a rigid system of lost sales volumes, inventory and price declines from mid-January and mid-April. Commodities sold before Jan. 15 are not covered. Small farmers, who can't afford to store large crop inventories after harvest, may find themselves frustrated, experts say.
"Smaller producers have definitely been hit hard by this and are seeing an inability to reach their customers in usual ways," said Arjomand."Some have resources to pivot, but others really don't. Having a program that is equitably accessible to all folks and business models going forward is really important."The list of grievances continues, to the tune of over 1,500 comments sent in to the federal government.
To receive payments, crops must show a price decline of more than five percent from mid-January and mid-April. Price drops after mid-April don't count, which could pose a problem for late spring and summer crops. But even within well-endowed sectors like livestock and dairy, some farmers and ranchers say USDA’s aid still hasn’t covered their wounds. That includes Titan Swine, the biggest single beneficiary of the program’s funds.
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