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Farm programs to be cut 6.8%

Ag Secretary Tom Vilsack says farm program payments WILL be cut. Vilsack answered the question at a House Agriculture Committee hearing about dietary guidelines on Wednesday from Minnesota Congressman Tim Walz.

Walz asked, “Sequestration on ARC and PLC, I’m going to ask if – my folks are out there – if you could help me.”

Vilsack replied, “A 6.8% reduction, across the board, regardless of when they came into the FSA office or when they….”

Walz said, “Okay. So, what they’re hearing is true, there will be a reduction?”

Vilsack replied, “Yes, unless something happens with sequester.”

In addition to cuts in the Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) programs, cuts also apply to some USDA loan programs including marketing loans. Congress passed federal budget sequestration rules – automatic cuts – back in 2011.