This will be the biggest cut in federal funding for the rural economy. This has wide ranging repercussions not only for the U.S. rural economy but for all U.S. tax payers as well.
In a significant development that could see food prices move up northwards, the White House budget has proposed $46.54 billion in federal government funding cuts for the agriculture sector panned across the next 10 years.
U.S. President Donald Trump’s biggest funding cut will be in the form of a $38 billion cut in farm supports, and include new barriers for federal subsidies for crop insurance premiums as well as caps for commodity payments.
The proposal will eliminate the Rural Economic Development program, which provides zero-interest loans to rural utilities and support U.S rural businesses.
The funding cut will also limit government coverage of costs for federal inspectors at meat plants starting from 2018-2019 onwards.