Government Programs for Farm Land
Farmers receive more direct subsidies than almost any other sector of the economy, mostly from the Farm Service Agency (FSA), a division of the U.S. Department of Agriculture (USDA). These subsidies include direct loans, crop insurance and conservation incentive programs.
Other People Are Reading
-
Farm Loans
-
The Farm Service Agency offers a variety of loan programs for "family-size farmers and ranchers who cannot obtain commercial credit from a bank." These loans include "Beginning Farmer and Rancher Loans" for farms under 10 years old, "Emergency Farm Loans" for farms that have experienced drought, flood or other disaster, "Direct Operating Loans," which provide capital to help cover a farm's operating expenses, and "Socially Disadvantaged Farmers and Ranchers Loans," for farmers that are members of groups that have traditionally been subject to racial, ethnic or gender prejudice.
Crop Insurance
-
The FSA provides offers crop insurance for more than 100 crops nationwide and additional insurance for certain crops on a county-by-county basis. The FSA also manages a Noninsured Crop Disaster Assistance Program that provides "financial assistance to producers of non-insurable crops when low yields, loss of inventory or prevented planting occurs." Plans and rates are calculated based on a farmer's actual production history and a given area's rainfall and vegetation indexes. According to a 2007 report of the Government Accountability Office (GAO), certain crop subsidy programs might be re-configured in coming years to support the maintenance of traditional grassland ecosystems.
-
Conservation Reserve Program
-
The FSA provides subsidies to farmers who plant "permanent vegetation on idle crop land" through its Conservation Reserve Program. Idle land is at high risk for erosion and loss of soil nutrients. The Conservation Reserve Program allows for this land to re-grow its nutrient base and provides for the restoration of ecologically significant natural habitats. Farms built on wetlands and flood plains might receive additional funding from the program.
-
References
Resources
- Photo Credit Karl Weatherly/Photodisc/Getty Images
