December 10, 2019

Farm Bill Issues; and Climate Issues

Farm Bill: Payment Limits

The Washington Insider section of DTN noted yesterday (link requires subscription) that, “Shifting away from direct payments [related graph] would go a long way toward resolving the problem of farm payment limits, which Ag panel Chairman Peterson sees as the main reason for opposition to federal farm program. ‘A lot of the huge payment issues would go away if you don’t have direct payments,’ Peterson said. Direct payments, he says, are what generates ‘all the opposition because we make payments to people who aren’t farming [such as] people who own land [but] who live in New York City.’

However, Peterson is a realist who knows that if farmers are asked to give up $5.2 billion in annual direct payments, they will demand something in return. That ‘something’ could be a revamped average crop revenue election (ACRE) program [related graph] that is less complicated to explain and that provides better protection for farmers by being based on economic conditions at the county rather than the state level.”