Farm Bill Developments
DTN Ag Policy Editor Chris Clayton reported yesterday that, “After two days of blasting holes in the Senate Agriculture Committee farm safety net, House Agriculture Committee leaders have made it clear they want a target-price program for farmers. [prepared testimony from the House hearings from Wednesday and yesterday can be viewed here and here].
“A House Ag Subcommittee repeatedly examined how the Senate safety net, the Agriculture Risk Coverage program, or ARC, would work with insurance, or not work at all depending on the commodity or region. The best option going forward is an alternative program that offers farmers a target price for crops.
“To satisfy farmers in various regions and commodities, a target price program would likely have to increase the prices for at least some commodities from the current counter-cyclical program target prices. Farmers now lament that the current counter-cyclical target prices are well below the cost of production.”