Sequester Will Reduce FSA Payments

FSA says farmers should 'plan accordingly' for cuts expected in FY 2014.

Published on: Nov 18, 2013

USDA's Farm Service Agency Friday reminded farmers who participate in FSA programs to "plan accordingly" for sequester cuts projected under the Budget Control Act of 2011.

The BCA mandates that federal agencies implement automatic, annual reductions to discretionary and mandatory spending limits. For mandatory programs, the sequestration rate for FY2014 is 7.2%. Accordingly, FSA is implementing sequestration for the following programs:

•Dairy Indemnity Payment Program;
•Marketing Assistance Loans;
•Loan Deficiency Payments;
•Sugar Loans;
•Noninsured Crop Disaster Assistance Program;
•Tobacco Transition Payment Program;

FSA says farmers should plan accordingly for cuts expected in FY 2014.
FSA says farmers should 'plan accordingly' for cuts expected in FY 2014.
•2013 Direct and Counter-Cyclical Payments;
•2013 Average Crop Revenue Election Program;
•2011 and 2012 Supplemental Revenue Assistance Program;
•Storage, handling; and
•Economic Adjustment Assistance for Upland Cotton.

Related: Find Your Local FSA By State

Conservation Reserve Program payments are specifically exempt by statute from sequestration, thus these payments will not be reduced.

"These sequester percentages reflect current law estimates; however with the continuing budget uncertainty, Congress still may adjust the exact percentage reduction," said FSA Administrator Juan M. Garcia.

"At this time, FSA is required to implement the sequester reductions. Due to the expiration of the Farm Bill on Sept. 30, FSA does not have the flexibility to cover these payment reductions in the same manner as in FY13. FSA will provide notification as early as practicable on the specific payment reductions," he said.

Source:USDA

Related: What USDA Farm Service Agency Can Do For You