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. |