Leah Douglas and P.J. Huffstutter

WASHINGTON (Reuters] – In an effort to get U.S. Wheat producers to increase their yields and to boost the government’s ability to provide short-term loans for farmers of certain foods crops, the Biden administration has asked Congress to approve $500,000,000 to the farm sector.

This request forms part of the larger $33 billion President Joe Biden requested on Thursday from lawmakers to support Ukraine. It is a drastic escalation in U.S. financing for war with Russia.

This effort is necessary because global grain prices are on the rise following Russia’s invasion Ukraine, which caused disruption in shipments of wheat and corn from key suppliers. Global food inflation has been on the rise.

A U.S. Department of Agriculture official stated that the request was made to improve the U.S.’s production of wheat, which is currently facing a worldwide shortage as a result of war.

The official stated that USDA believes it will allow U.S. farmers to replace as much as 50% of wheat previously exported from Ukraine to the global marketplace, while lowering food prices for American consumers.

According to the official, about $100 million is requested to provide a $10 per-acre incentive for farmers. This will be paid via crop insurance premiums. The soybean crop would have to be planted in 2020 after a 2023 winter wheat crop.

The official stated that these payments were intended to stimulate farmers to increase wheat production while still being able to produce a spring crop.

A further $400 million will be channeled through USDA’s Marketing Assistance Loans, which offer interim financing for growers, and allow them to sell more crops faster at higher profits.

Biden’s administration wants to increase USDA loan rates by 2 years for foods commodities like wheat, rice, and edible oils. This includes soybean and sunflower oileeds. According to this proposal, the wheat loan rate would rise 63% and oilseeds up 40% while rice and pulse crop would increase 21%.