Ag Policy Blog

DECATUR, Ill. (DTN) -- Deputy Agriculture Secretary Stephen Vaden suggested Tuesday that USDA officials are looking at a "bridge" policy that would help crop farmers facing low commodity prices until stronger price supports take effect next year.

Vaden represented the Trump administration on Tuesday at the Farm Progress Show. He spoke about issues such as expanding markets and trying to hold trading partners accountable. He also said Agriculture Secretary Brooke Rollins could not attend because of a Cabinet meeting where she would brief President Donald Trump about the state of the agricultural economy "as we head into harvest and what we need to do to bridge this year to next year."

Vaden pointed out the higher commodity safety net in the One Big Beautiful Bill, but higher Agricultural Risk Coverage and Price Loss Coverage (ARC and PLC) programs won't pay out until October 2026 for the 2025-26 crop. Improvements to crop insurance premium subsidies and higher coverage levels for most crops won't start until crops are planted next year as well.

"We have got to get to '26, and that's what we're talking about now," Vaden said.

Asked by DTN about what a "bridge" looks like, Vaden said, "We're seeing the same thing that farmers are seeing with regard to commodity prices, and we know that many of the most important pieces of the One Big Beautiful Bill don't come into effect until 2026," he said.

The Commodity Credit Corp. (CCC) will be replenished for the next fiscal year, likely around November, Vaden noted.

"That's after harvest is completed for our corn and soybean farmers, so we've got to get them from this growing season to the next growing season."

The Trump administration in 2018-19 tapped the CCC for more than $23 billion for commodity producers primarily to support declines in crop prices due to the trade war with China. It's possible a similar scenario could come into play, though Vaden didn't specifically spell that out in his comments.

Vaden pointed out USDA has paid more than $8 billion in Emergency Commodity Assistance Program (ECAP) aid payments for 2024 crop losses and another $4 billion in the Supplemental Disaster Relief Program for at least some of the crop and livestock losses in 2023 and 2024. Vaden noted there should be some future announcements in September for farmers to file other disaster claims for 2023 and 2024 crop losses that were not covered by crop insurance.

In regard to current market conditions, Vaden added, "We are seeking to develop policy solutions to help bridge that, and that's what the secretary and I are working on, and what she's constantly talking to not only the president but other members of her cabinet about. You can rest assured that when we have those announcements to make, we'll do it."

THERE ARE ENOUGH FSA STAFFERS TO MEET WORKLOAD

Vaden also rejected the notion that there are not enough Farm Service Agency (FSA) staff at county offices to handle the load of new programs or disaster aid.

The National Association of Farmer Elected Committees (NAFEC) wrote to other farm groups last month, raising concerns about local staffing levels. Like other agencies, FSA has seen a wave of people take early retirements and buyouts. The NAFEC leadership said, "the staffing levels in our counties have never been lower." While "already at a breaking point," FSA staff were implementing aid programs while now have to develop 30 million more base acres that were added to farm programs in the budget reconciliation bill. NAFEC called on farm groups to press Congress to help FSA with staffing levels.

"Without staffing increases, critical services will be impacted," NAFEC wrote.

Vaden said USDA would not be asking for temporary or permanent FSA staffing levels. He said FSA staff had released ECAP and disaster program payments in record times through FSA.

"We did it with our current staffing levels. We did it so where our producers received their money in three business days after they submitted the form, and the forms were already preprinted, and all they had to do was sign, in most cases," Vaden said. "That is the fastest roll out of any commodity assistance program in USDA's entire history. So, if we were having staffing level issues, how would that be possible? The answer is, it wouldn't, and we're not."

PRESSING FOR MARKETS WITH TRADE

Vaden repeatedly said the only way for commodity prices to increase is with higher demand. He touched on announcements such as England committing to buy U.S. ethanol and Japan agreeing to buy sustainable aviation fuel from the U.S., though that production has yet to develop.

"You can bet that on every conversation that we're going to have with administration officials from whatever department, opening up new markets, focusing on the commodity price and focusing on the possible record yields we are seeing this fall, is first and foremost in every conversation that we are having."

Recognizing Brazil is a major competitor for the U.S. when selling to China, Vaden said he believed the Trump administration's investigation into Brazilian trade practices such as import tariffs on ethanol or Brazil's deforestation would help show that Brazil is unfairly competing against U.S. corn and soybean farmers. Vaden suggested the results of that investigation would somehow help U.S. commodities increase sales.

"When we're producing the yields that we're producing on a sustainable basis, that we're producing without any environmental harm, and we're committing and we are competing rather against people who are literally burning down a forest to expand their agricultural productivity, that's something that's difficult to compete with," Vaden said. "That's not an even playing field. We're not going to tolerate that, and that's why we've got this investigation going, because our farmers should not be competing with people who are not playing on a level playing field."

Chris Clayton can be reached at Chris.Clayton@dtn.com

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