February 18, 2020

Farm Bill; EPA; Biofuels; Climate; Nutrition; Trade; Ag Economy; and Political Notes

Farm Bill (Budget Issues)

DTN Political Correspondent Jerry Hagstrom reported yesterday (link requires subscription) that, “High world cotton prices have led to a big drop in government payments to cotton farmers, but that decrease in subsidies will make it difficult for Congress to make changes to resolve the World Trade Organization cotton case against the United States that Brazil won, House Agriculture Committee Chairman Collin Peterson said in a recent interview.

“‘There will be no baseline for cotton,’ said Peterson, D-Minn., referring to the congressional calculation of how much has been spent on specific government programs. Peterson has said that if he remains chairman, each farm sector will have to stick within its current budget if farmers are seeking changes in programs for specific crops. Depending on how the Congressional Budget Office views future cotton prices and whether they would go low enough to trigger countercyclical and marketing loan payments, Peterson’s statement could be an exaggeration, but it is likely that the baseline will be much lower.”