The United States Department of Agriculture (USDA) issued a report this week saying federal government farm subsidies will balloon by 345 per cent this year, rising to $42.4 billion compares with $9.3 billion last year.
In Canadian dollars, that’s $60.77 billion.
The USDA’s Economic Research Service predicted net farm income will total $180.1 billion this year, up by $41.0 billion from 2024, while net cash farm income is projected to hit $193.7 billion which would be an increase of $34.5 billion.
This surge is largely attributed to ad hoc disaster and economic assistance, totaling $35.7 billion, approved by Congress in December. Other direct payment programs, such as Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC), are also projected to rise significantly.
Despite increasing costs in labor, livestock purchases and seed, overall farm expenses are forecast to decline slightly to $450.4 billion in 2025, continuing a downward trend from 2023. Key reductions include lower expenditures on feed, fertilizer, and pesticides.
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