Republican senators are making a case that disaster aid for farmers must address both natural disasters, such as hurricanes, and “market-related disasters” impacting agricultural producers nationwide. The Senate Appropriations Committee hearing comes just days after the White House proposed a nearly $100 billion disaster package that includes $21 billion in aid for farmers and ranchers impacted by natural disasters.

Georgia and North Carolina senators detailed extensive crop and infrastructure losses, emphasizing the urgency of assistance to save family farms.

Deputy USDA Secretary Xochitl Torres Small discussed the need to swiftly deliver aid to farmers impacted by natural disasters. She expressed a more cautious approach to helping farmers impacted by economic conditions, noting that recent net farm incomes exceed the 20-year average. She advised looking at which farmers are struggling.

Some Senators criticized this view, citing severe financial struggles among farmers due to increased production costs and reduced revenues. For example, cotton production costs now exceed earnings by $326 per acre, threatening sustainability.

Lenders predict nearly half of agricultural borrowers will be unprofitable in 2023. This will tighten credit availability. Senators from drought-stricken regions like Kansas underscored the silent but severe impacts of drought on crop yields and rural communities. They urged Congress to direct USDA to ensure disaster relief is equitable for all struggling farmers.

Read more about the disaster assistance negotiations here.