FarmPolicy

July 26, 2014

Farm Bill Cost Still a Concern; Food Prices; CAP; Doha; Crop Progress

Farm Bill

Philip Brasher reported in Friday’s Des Moines Register that, “The new farm bill that got final congressional approval Thursday could result in large subsidies for Iowa’s farmers and wind up costing taxpayers billions of dollars more than lawmakers are estimating, according to a U.S. Agriculture Department analysis.

“Under a new program created by the bill, subsidies for corn alone could reach $10 billion a year nationwide if market prices dropped to $3.25 a bushel, a historically high level. Another $4 billion could be paid to soybean growers at a market price of $7 a bushel.

“This would push the price tag for the farm bill well over the $300 billion mark over the next five years. It was estimated by Congress to cost $289 billion over five years.

“The potential payments ‘are just off the charts here,’ Charles Conner, the deputy agriculture secretary, told The Des Moines Register.”

(more…)