October 3, 2000

USDA distributed a record $28 billion in direct assistance to American farmers and ranchers in the fiscal year that ended Sept. 30 -- about half of farm income. Without USDA assistance farm income would have hit its lowest level since 1984. In releasing the figures, Agriculture Secretary Dan Glickman said, "I have no doubt that, in many cases, USDA assistance has meant the difference between small, family farmers surviving or going out of business."

Assistance to farmers included $8 billion for loan deficiency payments and marketing assistance loan gains and $11 billion for supplemental income assistance payments enacted in 1999 and 2000. Glickman's announcement Monday came as USDA closed out the fiscal year by issuing nearly $5.5 billion in additional emergency payments to almost 1.4 million eligible farmers. About 97% of the emergency payments were issued in only two weeks.

Glickman said USDA begins issuing this week more than $1.4 billion to landowners for diverting fragile farmland into conservation uses. Participants in the Conservation Reserve Program will receive an average of $4,833 per farm and $45.17 per acre on more than 462,855 contracts and 293,857 farms.

The program benefits landowners and the public by reducing soil erosion, expanding wildlife habitats, improving air and water quality, restoring wetlands, and encouraging tree planting. Glickman urged Congress to enact the President's proposal to increase authorized CRP enrollment by an additional 3.6 million acres to a total of 40.0 million acres.

Glickman also announced that USDA today began distribution of $340 million to help compensate tobacco farmers who lost income because of a reduction of tobacco quota or acreage for the 1999-2000 crop years. Payments are expected to be completed by Oct. 20. The amount of U.S. tobacco produced is regulated to match supply and demand with a guaranteed minimum price for producers. In recent years, allotments and quotas for some kinds of tobacco have been significantly reduced.

Farmers to decide when they will receive their share of $4.1 billion of 2001 production flexibility contract (PFC) payments, Glickman said. Producers may request to receive payments all at once or in two equal payments during any month from October 2000 through September 2001. Those who do not choose a payment option will receive their full payment near the end of that period. Farmers should contact their local Farm Service Agency office to receive additional information regarding payment options.

Additional information on CRP payments, including acreage figures by state, can be accessed at http://www.fsa.usda.gov/dafp/cepd/crpinfo.htm. Further information on assistance for tobacco farmers and more materials about 2001 PFC payments, including payment rates per crop. can be found at www.fsa.usda.gov.