Source: POLITICO'S MORNING AGRICULTURE, 5/6/20

There’s momentum in Congress to expand the borrowing authority of USDA’s Commodity Credit Corporation, the Depression-era agency that’s funding part of the department’s stimulus payments to farmers and ranchers (and that’s facilitated the Trump administration’s trade bailout program since 2018). It’s one of the primary funding options on the table as lawmakers consider more agricultural aid in their next coronavirus response package.

A House bill introduced on Tuesday, backed by Reps. Austin Scott (R-Ga.), a senior House Ag member, and Sanford Bishop (D-Ga.), who chairs the House Appropriations panel that oversees USDA’s budget, would lift the CCC’s annual borrowing cap from $30 billion to $68 billion — effectively catching up to inflation since the limit was last adjusted in 1987.

What it means: The proposal would essentially give USDA a green light to send far more money to struggling producers who are rapidly losing money, euthanizing livestock and destroying perishable goods because of unprecedented market disruption.

As MA readers are well aware, Congress has scrambled for new ideas to address the shortfalls in its initial efforts to save the farm economy. Flooding farmers with extra cash could go a long way to resolving debates over how to divvy up limited resources from the government.

Scott said his legislation would help mitigate long-term damage to the food supply chain and insulate annual farm bill programs that are also paid through the CCC.

Targets and trade-offs: Congress in March considered hiking the agency’s borrowing limit to $50 billion. But if such a boost is back on the table, Democrats could again demand a 15 percent increase in Supplemental Nutrition Assistance Program benefits in exchange.

John Hoeven (R-N.D.), Bishop’s counterpart in the Senate, who has played a key role in shaping the agricultural aid plans, told reporters last week that he’s in favor of shooting for the $50 billion mark (or higher) in the next stimulus package.

More aid asks: Sen. Joni Ernst (R-Iowa) is pressing USDA to include egg producers in its $19 billion aid package and to consider directly buying and redistributing liquid egg products.