Indiana farmers will lose about $5.5 million over the next three years from the state’s subsidies program, the Indiana Farm Bureau announced Friday.
The subsidies, which cover some 70,000 Indiana farms, were set to expire on June 30.
But a compromise deal was reached with the state Senate that allows Indiana farmers with certain farm types to continue to receive subsidies through 2019.
Indiana is one of 10 states that have an agreement with the federal government to offset some of the cost of agricultural subsidies.
The other 10 states are Ohio, New Mexico, Kentucky, Mississippi, Tennessee and West Virginia.
The Indiana Farm Report, an annual report by the farm group, said the farm subsidy payments would be split between Indiana and the federal crop insurance program.
The Indiana subsidies, the report said, would be offset by the state Farm Credit program, which covers more than $2.2 billion annually.
Under the deal, Indiana farmers could continue to benefit from the subsidy program through 2019, but it also provides for Indiana farmers eligible for a loan to cover the shortfall.
The loan would be repaid in full once the subsidy payments are paid off.
The farm bureau said it expects to save between $4 million and $6 million a year by 2019, depending on the size of Indiana’s agricultural production.