Between low prices and talks of trade issues, Ag Secretary Brooke Rollins has promised to make farmers whole in the coming year, but she could take a unique approach to make it happen.
Sources tell AgriPulse that Rollins could use Section 32 under the Commodity Credit Corporation, which allows the Department to purchase extra commodities for feeding programs. However, it is written to also reestablish farmers’ purchasing power by making payments.
During the first Trump Administration, USDA used Section 5 authority. However, there is little money left unless Congress refills the account.
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Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.
While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
China’s renewed purchases signal improving sorghum demand at a time when export markets are otherwise uneven. Meanwhile, agriculture groups across the U.S, Canada, and Mexico want to protect close trade relations.
Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
Despite the need for swift action, many ag lawmakers and industry groups argue that farm aid alone will likely not be sufficient to help farmers without improved trade relations with China.
