The U.S. Department of Agriculture (USDA) has announced additional payments for California rice producers. The additional financial support is being made possible through the FSA’s Rice Production Program. This program, totaling $250 million in assistance, is based on 2022 rice acreage. The announcement follows the signing of the Consolidated Appropriations Act, 2023 by President Joe Biden. The Act granted the USDA the authority and funding to allocate payments to rice producers using existing USDA data, such as planted acres and acres that couldn’t be planted.
“While increased input costs have impacted many agricultural producers, record high increases in 2022 had a disproportionate economic impact on rice producers,” said California FSA Executive Director Blong Xiong. “I am pleased that Congress authorized the funding needed to not only provide one payment to State’s rice producers, but also sufficient funding to now provide an additional payment. This financial assistance provides a much-needed capital inject for rice production.”
To simplify the process, rice producers who previously received approval for the Rice Production Program and an initial payment will automatically receive an extra payment of 28 cents per pound, based on their previously reported data. The initial payment had been made at a reduced rate of one cent per pound, resulting in a total payment rate of $1.28 per pound. Payment limits for the program are established by statute and depend on the farmer’s average adjusted gross farm income (AGI).
If a farmer’s AGI from farming activities exceeds 75 percent of their average AGI, they qualify for a higher payment limit of $250,000. Conversely, those with an AGI below 75 percent of their average AGI cannot receive more than $125,000 in payments. AGI is determined based on the three taxable years preceding the most recent complete tax year. California rice producers who wished to request the higher payment limit were required to visit their local county office and submit the necessary form and certification by September 8, ahead of the initial payment distribution.
Brian German
Ag News Director / AgNet West