The proposed year-end ag disaster relief package allocates nearly $31 billion for farmers. This includes almost $21 billion to help farmers recover from natural disasters and another $10 billion in economic aid to crop producers. The bill also extends the 2018 farm bill through the end of September.

Once the bill becomes law, the USDA will have 90 days to make one-time payments to a producer of an eligible commodity crop. The money is allocated to crops where the expected gross return per acre is less than the expected cost of production. The payment to producers will be equal to 26% of the economic loss of the commodity on the planted acreage.

The USDA will receive $20.78 billion to help cover losses due to natural disasters. This includes $2 billion set aside for livestock producers who suffered losses due to drought, wildfires and floods. The legislation also increases payments and losses covered under the Noninsured Disaster Assistance Program (NAP).

A provision in the bill allows year-round sales of E15 nationally, which will help boost ethanol demand. In addition, the bill provides funding for several USDA programs that do not have baseline funding or reauthorization. The Dairy Margin Program will be extended through December 31, 2025.

Read more on the Congressional ag relief package here.