An ag economist with University of Missouri Extension says farmers have been using the Farmer Bridge Assistance Program payments to help with cash flow.
Ben Brown tells Brownfield “whether that’s to pay down debts or to keep it in liquid cash to pay for inputs throughout the growing season until we get to harvest. It’s very much a liquid asset to most producers.”
Brown says it’s unclear whether debt is being repaid with the ad-hoc assistance, because farmers also need flexibility to pay expenses.
“Some banking institutions are probably asking for that to be used to pay down some past due operating notes.”
Brown says the USDA has paid out about half of the available funds in the FBA program. The USDA has allocated $11 billion for the program.
The potential for more ad-hoc assistance exists, but Brown says it will require a legislative vehicle to pass in Congress.
