Payments to Farmers Begin

August 15, 2001

Agriculture Secretary Ann M. Veneman says USDA will begin making more than $5 billion in supplemental payments to about 1.4 million producers this week. Other payments will be stretched into September as the department seeks to meet a Sept. 30 deadline when all payments must be made.

A tentative time schedule, guidelines, and specific amounts have been set to begin to distribute those payments to producers. Beginning Tuesday (Aug. 14) $4.6 billion for supplemental market loss assistance payments to producers receiving a 2001 Agricultural Market Transition Act (AMTA) payments began; also scheduled were $423 million in supplemental payments to 2000-crop oilseed producers

On Sept. 7 USDA will distribute $84.7 million to cottonseed producers and first-handlers of the 2000 crop of cottonseed and $16.9 million for payments to wool and mohair producers that received a payment for the 2000 marketing year.

Three days later, on Sept. 10, $54 million will be distributed to producers of quota or additional peanuts who received a payment for the 2000 crop year. On Sept. 18, $129 million will go to eligible tobacco producers as defined in section 204(b) of the Agricultural Risk Protection Act of 2000.

These payments will be paid automatically to eligible farmers who will not have to file any forms or visit any offices. All expenditures are required to be made no later than Sept.30. Beginning Oct.1 any remaining funds become unexpendable.

Maximum payment limitations for the 2001 crop year loan deficiency payments and marketing loan gains have been increased from $75,000 to $150,000.

The act also provides for a $500,000 grant to each state and $1 million to Puerto Rico to promote agriculture. Additionally, each state will share $133.4 million in grants in amounts that represent the proportion of the value of specialty crop production in the state as set forth in the authorizing legislation.