FSA Advises Producers to Anticipate Payment
Reductions Due to Mandated Sequester
USDA’s Farm Service Agency (FSA) is reminding
farmers and ranchers who participate in FSA
programs to plan accordingly in FY2014 for
automatic spending reductions known as
sequestration. The Budget Control Act of 2011 (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;
·
2013 Direct and Counter-Cyclical Payments;
·
2013 Average Crop Revenue Election Program;
·
2011 and 2012 Supplemental Revenue Assistance
Program;
·
Storage, handling; and Econimic Adjustment
Assistance for
upland cotton
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. Today’s announcement
intends to help producers plan for the impact of
sequestration cuts in FY2014.
At this time, FSA is required to implement the
sequester reductions. Due to the expiration of
the Farm Bill on September 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.
For information about FSA programs, visit your
county USDA Service Center or go to
www.fsa.usda.gov/ .
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