Market Loss Assistance

Stored: Market Loss Assistance

Market Loss Assistance

Type	Program
Sponsor Organization	Farm Service Agency
Top Organization	Department of Agriculture
Creation Legislation	Agricultural Risk Protection Act of 2000 (Public Law 106-224), Farm Security and Rural Investment Act of 2002 (Public Law 107-171)
Website	Website
Purpose	Market Loss Assistance program, run by USDA via Farm Service Agency, aids farmers hit by low prices or disasters with payments for crops like corn and dairy to stabilize income nationwide.
Program Start	1999
Initial Funding	$300 million
Duration	Ongoing (ad hoc and emergency basis)
Historic	No

The Market Loss Assistance (MLA), established in 1999 under the Agricultural Risk Protection Act of 2000 and expanded by the Farm Security and Rural Investment Act of 2002, is administered by the Department of Agriculture (USDA) through its Farm Service Agency (FSA) to provide emergency payments to farmers, allocating over $20 billion since inception to support approximately 800,000 farms annually by 2025. Initially funded with $300 million, it has grown to distribute $1.5 billion in FY 2024 across 800,000 payments, funding losses for crops like corn and dairy at farms nationwide. Despite its impact, challenges like funding unpredictability, eligibility disputes, and market volatility persist (web ID: 4), but it remains a key USDA effort to support farm economic stability.

Official Site

Goals

• Compensate farmers for market losses due to low prices, trade disruptions, or natural disasters affecting crops and livestock.
• Stabilize farm income and support agricultural producers during economic downturns or market instability.
• Mitigate financial risks for producers of commodities like corn, soybeans, wheat, and dairy through direct emergency payments.

Organization

The MLA program is managed by USDA’s Farm Service Agency, overseen by Administrator Zach Ducheneaux since 2022, with regional FSA offices and county committees implementing payments under federal oversight. It operates via ad hoc and emergency appropriations, guided by the Agricultural Risk Protection Act, Farm Security and Rural Investment Act, and subsequent funding acts like Public Law 117-328 (2022).

Partners

• National Corn Growers Association
• American Soybean Association
• National Milk Producers Federation
• University of Wisconsin Extension

History

Authorized by the Agricultural Risk Protection Act of 2000 (Public Law 106-224) and expanded by the Farm Security and Rural Investment Act of 2002 (Public Law 107-171), and launched in 1999 with $300 million, the MLA program expanded with ad hoc appropriations, reaching $1.5 billion in FY 2024. It grew from supporting 400,000 farms annually in 2000 to 800,000 by 2025, addressing market challenges with innovations like trade loss payments (web ID: 4). By 2025, it has funded over $20 billion, though GAO notes funding unpredictability concerns (web ID: 4).

Funding

Initial funding of $300 million in 1999 supported the program’s launch, with over $20 billion appropriated by 2025 via ad hoc USDA budgets—e.g., $1.5 billion in FY 2024. Ongoing emergency and ad hoc appropriations under the Agricultural Risk Protection Act and Farm Security and Rural Investment Act sustain its operations, with no fixed end as it addresses ongoing market losses.

Implementation

MLA distributes direct payments annually or as needed, requiring farmers to document losses and enroll in USDA programs, tracked via FSA’s program management system. It progresses through partnerships with agricultural organizations—e.g., 800,000 farms yearly—and emergency funding, adapting to market needs with no set end, though eligibility disputes remain a challenge (web ID: 4).

Related

• Agriculture Risk Coverage (ARC)
• Price Loss Coverage (PLC)

External links

• https://www.fsa.usda.gov/programs-and-services/market-loss-assistance/index
• https://www.nass.usda.gov
• wikipedia:Market Loss Assistance

Social media

• https://twitter.com/USDA
• https://www.linkedin.com/company/u-s-department-of-agriculture