White House seeks $500 million for farmers to grow more wheat, pay for market loans

div classBodysc17zpet90 cdBBJodivpBy Leah Douglas and P.J. Huffstutterp

pWASHINGTON Reuters – The Biden administration is asking Congress to approve 500 million for the farm sector, in a bid to woo U.S. wheat producers to doublecrop their fields, and boost how much the federal government will spend on shortterm loans to farmers who grow certain food crops.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe request is part of President Joe Bidens broader 33 billion request on Thursday to lawmakers to support Ukraine, a dramatic escalation of U.S. funding for the war with Russia.p

pThe effort comes as global grain prices have surged, following Russias invasion of Ukraine which disrupted shipments of corn and wheat from those key suppliers. Meanwhile, food inflation is surging worldwide.p

pThe 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. p

pUSDA 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.p

pThe 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.p

pThese payments are designed to encourage farmers to add more wheat production, while still being capable of producing a spring crop, the official said.p

pIn addition, 400 million would be routed through USDAs marketing assistance loans, which provide interim financing to growers and buy them more time to sell their crops at a higher profit.p

pThe Biden administration is seeking a twoyear 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.p

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pp Reporting by Leah Douglas in Washington and P.J. Huffstutter in Chicago Editing by Matthew Lewisp

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