Overview of TAAF Program

The Trade Act of 2002 established a new Trade Adjustment Assistance for Farmers program by amending the Trade Act of 1974 ( P.L. As amended by the enacted 2009 economic stimulus package ( P.L. First, a producer group must be certified by USDA as eligible to apply for program benefits (see " Requirements for a Commodity Group to Be Certified "). Second, if the group is certified, individual producers in that group must meet certain requirements to be approved to receive technical assistance and cash payments (see " Individual Producer Eligibility Requirements " and " TAAF Program Benefits "). To certify a commodity group, the Secretary must determine that the increase in imports of the agricultural commodity produced by members of the group "contributed importantly" to at least a 15% decline in the national average price, quantity of production, or value of production or cash receipts of the commodity. To be eligible, an individual producer must show in the application submitted to USDA that (1) the agricultural commodity was produced in the year covered by the group's petition, and in at least one of the three preceding marketing years; (2) the quantity of the commodity produced in that year has decreased compared to the amount produced in a previous year, or the price received for the commodity in that year has decreased compared to the average price received in the preceding three marketing years; and (3) no cash benefits were received under the TAA for Workers and TAA for Firms programs, nor were benefits received based on producing another commodity eligible for TAAF assistance. The reauthorization of TAAF through FY2021 under P.L. 111-5 ) authorized and appropriated $90 million in each of FY2009 and FY2010, and $22.5 million for the first quarter of FY2011 (October to December 2010). Under Section 223 of the Trade Adjustment Assistance Extension Act of 2011 ( P.L. 114-27 ) authorized TAAF to be appropriated $90 million each year for FY2015 through FY2021. To date, no new funds have been appropriated. Certifications and Producer Approvals

With the 2009 changes to the TAAF program that eased the criteria for a producer group to be certified and for individual producers to be approved for program assistance, more of the provided funding has been used than in the FY2003-December 2007 period. These included producers of shrimp, catfish, lobsters, asparagus, and wild blueberries ( Table 3 ). USDA subsequently approved about 4,500 producers for training assistance and cash benefits in FY2010. In reviewing how USDA implemented the program, GAO offered three recommendations:
Require spouses of producers (i.e., those who share in the risk of producing an agricultural commodity) who may be eligible to apply for assistance to provide documentation on how they contribute to producing a certified commodity. Take steps to help ensure that any financial assistance payments made to producers are used for intended purposes (e.g., by requiring them to detail in their business plans how they plan to use these funds). Broaden the program's evaluation approach to help ensure that USDA can comprehensively evaluate the impact of the TAAF program on producers' competitiveness. USDA OIG Audit Called for Improved Oversight

In an audit report of TAAF dated October 2013, the USDA's Office of Inspector General (OIG) identified a number of shortcomings in the administration of the TAAF program. Major Trade Agreements Could Bring Adjustments

Following the enactment of P.L. 114-26 —the law that provides the President with Trade Promotion Authority (TPA)—the Obama Administration concluded negotiations on the Trans-Pacific Partnership (TPP) regional free-trade agreement, which includes the United States and 11 other Pacific-facing nations, but to date the agreement has not been ratified by Congress or by other TPP countries.
The Trade Adjustment Assistance for Farmers (TAAF) program provides technical assistance and cash benefits to producers of farm commodities and fishermen who experience adverse economic effects from increased imports. Congress first authorized this program in 2002, and made significant changes to it in the 2009 economic stimulus package (P.L. 111-5). The 2009 revisions were aimed at making it easier for farmers and fishermen to qualify for program benefits, and provided over $200 million in funding through December 2010. Subsequently, P.L. 112-40 (enacted in October 2011) authorized $202.5 million through December 2013, but no new program activity has occurred since December 2010 for lack of appropriated funds. In June 2015, Congress passed H.R. 1295, the Trade Preferences Extension Act of 2015, authorizing TAAF through FY2021, and the President signed the bill into law on June 29, 2015, as P.L. 114-27. Any program activity would still be contingent on the appropriation of funds.
The U.S. Department of Agriculture (USDA) is required to follow a two-step process in administering TAAF. First, a group of producers must be certified eligible to apply. Second, a producer in a certified group must meet specified requirements to be approved for benefits.
To be certified, a group must show that imports were a significant cause for at least a 15% decline in one of three factors: the price of the commodity, the quantity of the commodity produced, or the production value of the commodity. Once a producer group is certified, an individual producer within that group must meet three requirements to be approved for program benefits. These include technical assistance with a training component, and financial assistance. A producer must show that (1) the commodity was produced in the current year and also in one of the previous three years; (2) the quantity of the commodity produced decreased compared to that in a previous year, or the price received for the commodity decreased compared to a preceding three-year average price; and (3) no benefits were received under any other trade adjustment assistance program. The training component is intended to help the producer become more competitive in producing the same or another commodity. Financial assistance is to be used to develop and implement a business adjustment plan designed to address the impact of import competition.
From 2009 to 2011, USDA certified 10 of 30 petitions filed by producers of 5 commodity groups—shrimp, catfish, asparagus, lobster, and wild blueberries. USDA approved TAAF benefits for about 4,500 individual producers in FY2010, and for about 5,700 producers in FY2011.
In a 2012 audit of TAAF, the Government Accountability Office recommended that USDA require spouses who apply for assistance to submit documentation on how they contribute to producing a commodity, take steps to ensure that the program's financial assistance component is used for intended purposes, and adopt a longer-term approach to evaluate its effectiveness. A 2013 audit by USDA's Office of Inspector General (OIG) identified several shortcomings in administering the program, including determining eligibility and providing effective oversight.
The 2015 reauthorization of TAAF programs follows directly in the wake of the enactment of Trade Promotion Authority (TPA) legislation (P.L. 114-26) that President Obama had requested of Congress to facilitate the conclusion of regional free trade agreements, including the Trans-Pacific Partnership (TPP) with 11 other Pacific-facing nations. Under P.L. 114-27, TAAF is authorized to receive $90 million annually for FY2015 through FY2021, subject to annual appropriations. No new funding has been appropriated since the program's reauthorization.