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Biden Proposes $500 Million for Food Production Aid

Included in a $33 billion request from President Biden to Congress to support the ongoing efforts to defend Ukraine against Russia was a $500 million package of aid aimed supporting farmers in the production of certain food supplies. The request includes proposals for higher loan rates and crop insurance incentives for certain commodities. Senator John Boozman (R-AR) expressed reservations on the Biden plan and noted that he'd prefer to see USDA temporarily allow for crop production on Conservation Reserve Program (CRP) acres to help bolster production of food supply.

The plan to help American farmers follows an earlier move by the Biden Administration to provide substantial food assistance to countries in need as a result of the Russian invasion. To provide immediate assistance the U.S. Department of Agriculture (USDA) and the U.S. Agency for International Development (USAID) decided draw down the full balance of the Bill Emerson Humanitarian Trust (BEHT) as part of an effort to provide $670 million in food assistance. Congress is expected to consider legislation providing more funding for food aid and additional policies to aid in incentivizing additional food production in the U.S.

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