January 25, 2020

Policy; Trade; Biotech; Agricultural Economy; Budget; and, Regulations

Policy Issues

David Rogers reported yesterday at Politico that, “Falling crop prices are raising cost projections for new farm programs even before producers have signed up this spring.

The Congressional Budget Office weighed in this week with a revised baseline that shows annual payments to farmers could average $4.8 billion over the next decade — a nearly 50 percent increase over what CBO had predicted less than a year ago after passage of the 2014 farm bill.

“Taxpayers will get some relief, because the same market changes that are driving up the cost of the commodity title of the farm bill will help to lessen the cost of the heavily subsidized crop insurance program. CBO’s new baseline shows a modest $200 million drop from its past projections for average yearly crop insurance costs, and some economists argue that this number understates the potential savings.”