USDA’s Farm Service Agency (FSA) reminds farmers and ranchers who participate in FSA programs to plan accordingly in FY14 for automatic spending reductions known as sequestration. 

The Budget Control Act of 2011 mandates that federal agencies implement automatic, annual reductions to discretionary and mandatory spending limits. For mandatory programs, the sequestration rate for FY14 is 7.2 percent.


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Accordingly, FSA is implementing sequestration for the following programs: Dairy Indemnity Payment Program; 2014 crop Marketing Assistance Loans and Loan Deficiency Payments; Sugar Loans; Noninsured Crop Disaster Assistance Program; Tobacco Transition Payment Program; 2013 Direct and Counter-Cyclical Payments; 2013 Average Crop Revenue Election Program; 2011 and 2012 Supplemental Revenue Assistance Program; Storage and Handling; and Economic Adjustment Assistance for Upland Cotton. Because Conservation Reserve Program payments are specifically exempt by statute from sequestration, these payments will not be reduced.

In a news release, FSA Administrator Juan M. Garcia said, “These sequester percentages reflect current law estimates. However, with the continuing budget uncertainty, Congress still may adjust the exact percentage reduction. Today’s announcement intends to help producers plan for the impact of sequestration cuts in FY14.”

For information about FSA programs, visit your county USDA Service Center or go to


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