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The
request is part of President Joe Biden's broader $33 billion
request on Thursday to lawmakers to support Ukraine, a dramatic
escalation of U.S. funding for the war with Russia.
The effort comes as global grain prices have surged, following
Russia's invasion of Ukraine which disrupted shipments of corn
and wheat from those key suppliers. Meanwhile, food inflation is
surging worldwide.
The request aims to increase the production of U.S. food crops -
particularly wheat - which are experiencing a global shortage
due to the war, according to a U.S. Department of Agriculture
official.
USDA estimates it will help U.S. farmers replace up to 50% of
the wheat typically exported by Ukraine onto the global market,
and lower food costs for American consumers, the official said.
The request includes about $100 million to pay for a $10 per
acre incentive to farmers - paid through crop insurance premiums
- for a soybean crop planted after a winter wheat crop in 2023,
the official said.
These payments are designed to encourage farmers to add more
wheat production, while still being capable of producing a
spring crop, the official said.
In addition, $400 million would be routed through USDA's
marketing assistance loans, which provide interim financing to
growers and buy them more time to sell their crops at a higher
profit.
The Biden administration is seeking a two-year increase in these
USDA loan rates for food commodities including wheat, rice and
edible oils such as soybean and sunflower oilseeds. Under that
proposal, wheat loan rates would go up 63%, oilseed up 40%, and
rice and pulse crop up 21%.
(Reporting by Leah Douglas in Washington; and P.J. Huffstutter
in Chicago; Editing by Matthew Lewis)
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