Source:  POLITICO'S MORNING AGRICULTURE, 5/9/22

MA caught up with Bronaugh and asked about the president’s proposal to boost crop production amid the Russian assault on Ukraine, which has caused major disruption to global food supplies.

The U.S. crop subsidy plan is part of Biden’s funding request for Ukraine aid, and it includes $500 million in additional federal subsidies for farmers who plant wheat, rice and oilseeds like soybeans, sunflowers and canola.

As we’ve reported, some agricultural economists have questioned why the administration would try to boost subsidies for crops, especially soybeans, when prices are already so high. Agriculture Secretary Tom Vilsack tweeted praise for the plan this weekend, but he hasn’t commented on the merits of the proposal in detail. A USDA spokesperson says the department was involved in designing the programs.

Bronaugh weighs in: Asked about some of the criticism of the subsidies and why she thought the funding was necessary at this point, Bronaugh stressed USDA wants to “support our farmers and ranchers in being productive” amid “concern[s] about food availability.”

“To be able to increase the availability of soybeans and wheat in our major commodities, both here in the United States and all over the world, is going to be critical not only from a nutrition security standpoint, but also from an ability to support our producers here in the United States,” Bronaugh said.

Since Russia’s invasion of Ukraine, Vilsack and other Biden officials have consistently told reporters and ag groups that the full food supply fallout in Ukraine is still unclear. Vilsack in particular has questioned attempts at government intervention as a response, especially requests to allow farmers to plant crops on land currently enrolled in federal conservation programs, arguing U.S. farmers would respond on their own to high prices and help fill global supply gaps without requiring much, if any, federal intervention.

Asked why crops like soybeans would require subsidies into next year, Bronaugh echoed an argument from several other senior USDA officials: that prices could dip in the next year — even though ag economists expect prices to remain high through 2023.

“We always want them to be able to, through their prices, to be able to survive in terms of our major commodities,” Bronaugh said. “But the reality of the history of so many years [is that] they have needed more support. And so we as necessary will continue to support them, because that’s what they’re going to need to be sustainable.”

By the numbers: Under the Biden administration’s proposal, $100 million would go toward providing a $10-per-acre payment to farmers who plant a soybean crop after a winter wheat crop in 2023. Another $400 million would fund a two-year increase in loan rates for U.S. producers to encourage them to grow more select food commodities, including wheat, rice and oilseeds like soybeans, sunflowers and canola.