The US federal government is expected to waive agricultural restrictions on protected land and allow farmers to plant crops in an effort to mitigate the worsening global food crisis.
According to the US Department of Agriculture’s website, farmers who are enrolled in the agency’s Conservation Reserve Program can voluntarily cancel their contracts and plant this year’s crops on the land. As per the program, farmers receive compensation from the government to fallow environmentally sensitive land for 10 to 15 years; however, the newly amended rules apply to farmers only in the final year of their contract.
Those looking to terminate their contracts early will have to receive approval from the USDA and must wait until the primary nesting season is over before they can plant, hay, or graze the land. “Participants approved for this one-time, voluntary termination will not have to repay rental payments … to help mitigate the global food supply challenges caused by the Russian invasion of Ukraine and other factors,” read a statement published by the agency.
The latest move follows pressure from lawmakers on the Biden administration to allow farmers to use conserved land for agricultural purposes in wake of global food shortages brought on by the conflict in Ukraine. The UN Food and Agriculture Organization’s latest Food Price Index reading once again remained historically elevated last month, rising 29.8% from April 2021.
Information for this briefing was found via the USDA and the FAO. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.