Sen. Stabenow Questions Whether CCC Has Enough Funding To Start Implementing MFP 2

Sen. Debbie Stabenow, D-Mich., remains skeptical the Commodity Credit Corporation (CCC) has enough funding for initial Market Facilitation Program 2 (MFP 2) payments. She expressed that view during a Senate Agriculture Committee hearing Thursday (June 13). CCC funds will replenished later this year as the Fiscal Year 2020 appropriations funding process is expected to provide sufficient leeway for USDA to execute the $16 billion MFP 2 package. Still, Stabenow questioned whether USDA can come up with the $16 billion. She said USDA only has about $7.7 billion in additional spending authority through its CCC account. "Are you going to assume Congress will authorize an additional amount?" she asked. USDA Chief Economist Rob Johansson said there should be no problem because the CCC’s $30 billion in annual spending authority will be replenished at the start of the fiscal year, which begins Oct. 1. Tentative plans are for the Trump administration to release around 50%, ($8 billion), of the MFP 2 plan in August; with another 25% ($4 billion) in December and the last 25% ($4 billion) in February. The second and third installments would be contingent on ongoing trade policy discussions, USDA Secretary Sonny Perdue has said. The timing of USDA’s coming FY 2020 appropriations is still unclear, with sources signaling an eventual spending package approval or a continuing resolution (CR) prior to Oct. 1. A continuing resolution (CR) could contain additional funding for the CCC should that be needed. USDA could also repurpose some existing funding to the CCC if needed, sources indicate.