December 15, 2019

Policy Issues; Ag Economy; and, Regulations

Policy Issues

Marcia Zarley Taylor reported yesterday at the DTN Minding Ag’s Business blog that, “Plunging commodity prices are resetting potential corn payments under various Farm Bill options for 2014. The new calculations also point out how precarious price forecasting can be in assessing which farm program option fits each FSA farm. That’s why so many experts encourage growers to wait until December or January before making a firm commitment to their farm program choices.

“‘By the end of January, the estimate for 2014/15 spring planted crops will be ‘very’ accurate,’ says Kansas State University economist Art Barnaby. And although USDA hasn’t announced signup dates, it’s unlikely signup will occur before January.

Whether ARC or PLC provides better protection is still a moving target. ‘When the Farm Bill was signed last February, it seemed like 2014-crop prices would make [farm supports] largely irrelevant for corn producers. Maybe it would be relevant for wheat and sorghum and solid for rice,’ Brad Lubben, a University of Nebraska economist and director of the North Central Risk Management Education Center in Lincoln, Neb. ‘Six months of bearish price news since then has raised the safety net for corn.’”