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Federal ag payments welcome, but smaller
By the Associated Press, The Billings Gazette
August 20, 2001
 
GREAT FALLS (AP) The latest round of federal emergency agriculture payments began reaching Montana producers this past week, and farmers were seeing checks about 15 percent less than they received last year.

Market Loss Assistance payments, a Farm Service Agency program, totaled just over $127 million in 2000. Not all counties have issued the latest payments, but the Farm Service Agencys Bozeman office estimates Montana farmers will get about $108 million from the program this year.

In Cascade County alone, growers received more than $4.5 million last year. That was about $760,000 more than the $3.75 million in MLA payments sent out in Cascade County at the end of the week.

President Bush signed the aid bill Monday, and counties have been busy cutting checks to farmers.

Andy Maki, credit officer with Farm Credit Services, said the payments will help many farmers facing a short crop because of the dry conditions.

Its good timing, especially for farmers with operating loans out there, Maki said. If they can pay those down, theyll be able to save some interest.

An operating loan was exactly what was on Daren Vicks mind Friday. He and his sons farm about 10,000 acres in Cascade, Teton and Chouteau counties. He hadnt received the payment Friday morning, but said its coming at a good time.

Im going to check the mail, Vick told the Great Falls Tribune by cell phone from his grain field. We have a chemical bill due, so it will probably all go toward that.

Sun River farmer Chuck Merja said even with the payment, his operation probably will face a loss this year.

I think a lot of producers are pressed as far as cash flow this year, he said. I think most of these payments will go directly to loan payments or farm bills.

Many grain prices are better than last year, but many farmers have poor harvests because of the drought.

This is the poorest crop Ive ever had, Vick said. This year hes cut nine-bushel-per-acre barley and 10- to 20-bushel-per-acre wheat.

Crop insurance will help buffer the loss, but Vick hasnt settled his claims yet.

The last farm bailout packages in 1999 and 2000 paid farmers a market-loss payment equal to their Agricultural Market Transition Act program payment.

The Senate Agriculture Committee last fall approved a $7.5 billion emergency farm package, which would have meant another market-loss payment equal to a full AMTA payment. But the final bill was cut to $5.5 billion, with $4.6 billion for the MLA program.

AMTA payments, part of the 1996 Freedom to Farm Act, were supposed to help farmers move from government support programs to making an income strictly from marketing crops. The payments were scheduled to be reduced and eventually phased out.

But the farm program, dubbed Freedom to Fail by some farm organizations, didnt work as planned. Congress has authorized four emergency-crop payments in as many years and has added price support programs to boost farm incomes.