The Commodity Credit Corporation could soon fall short of funds while hindering farm safety net programs. While the increases in the farm safety net through the One Big, Beautiful Bill Act were welcome, there are concerns about USDA receiving enough funding for the safety net to work. John Newton, vice president of public policy with the American Farm Bureau Federation, says this is where the Commodity Credit Corporation comes into play.
Newton shared, “For close to 100 years now, USDA has used the Commodity Credit Corporation to implement congressionally established programs, and today, those programs are really the Farm Bill programs that farmers and ranchers have come to depend on. All of those programs are funded through the Commodity Credit Corporation, which has a borrowing authority of $30 billion per year.”
The improvements in the Farm Bill programs last year will likely cost more than the Commodity Credit Corporation’s defined limit.
“We’re going to approach the $30 billion borrowing authority pretty quickly, so it’s renewed questions in policy circles on whether the borrowing authority needs to be increased. If the Commodity Credit Corporation doesn’t have liquidity, USDA’s hands are really tied,” he added.
Without an increase in the Commodity Credit Corporation’s borrowing limit, USDA would need to turn to Congress for the funding, which could lead to major road blocks for farmers and ranchers.
“[While] potentially have[ing] to delay or prorate these important programs that farmers depend upon without additional borrowing authority and if USDA is out of liquidity, there’s going to be some important policy decisions that need to be made, or Congress is going to have to step in and replenish the CCC,” stated Newton.
