crop subsidies
Premium cap on crop insurance could hurt enrollment-Vilsack
The Senate proposal to place a $50,000 cap on premium subsidies for farmers buying crop insurance "could potentially impact participation" in the program, says Agriculture Secretary Tom Vilsack. The government pays an average of 62 cents of each $1 of premium, although the subsidy rate is as high as 80 percent on some policies. During a tele-conference, Vilsack said, "We don't want to go back to the days of ad hoc (disaster relief) legislation. That could potentially be much more expensive."
Pare crop insurance subsidies, encourage diversity-Report
Congress should phase out premium subsidies on crop insurance policies sold to the wealthiest U.S. farmers and offer policies that reward growers who hedge their risks by planting a variety of crops instead of specializing in one or two crops, said...
Low market prices could mean $6-$8 billion in corn subsidies
Two agricultural economists say corn subsidies could cost $6 to $8 billion for this year's record-large corn crop, says Reuters. The estimates are based on the projected U.S. average price of $3.50 a bushel for the crop, the price guarantees of the farm bill and...
Crop insurance favors large-scale growers, says white paper
The federally subsidized crop insurance system is skewed toward large-scale growers of crops such as corn and soybeans, says the Land Stewardship Project in the second of three white papers on the program.
Orman appeals for farm vote in Kansas Senate race
Independent Greg Orman campaigned in typically Republican rural Kansas with the argument incumbent Pat Roberts doesn't keep the state's agricultural interests in mind, says the Associated Press.
Glum price outlook as farmers face crop subsidy decisions
Farmers will sell this year's record-setting corn and soybean crops for the lowest season-average price in eight years, the government forecast in a new look at crop output and usage. USDA says the corn and soybean crops are marginally larger than it estimated a month ago. Supplies will be the largest in years, holding down prices for the year ahead.
Food issues rate “off the charts” with voters, says pollster
Voters respond strongly to issues such as food safety or assuring that children, veterans and the elderly have enough to eat, said pollster Celinda Lake.
Corn, rice, sorghum are likeliest to see subsidy payments
Corn, long-grain rice and sorghum are the most likely of the crops in the farm program to generate a subsidy payment because of low market prices, say economists Carl Zulauf of Ohio State University and Gary Schnitkey of U-Illinois. "Payments are far from certain," they write at farmdoc daily, "if prices strengthen due to lower production or higher demand." Their calculations, an update of an earlier blog, are based on USDA's estimates of season-average prices and yields nationwide. The new Agriculture Risk Coverage plan is more likely to trigger a payment than the Price Loss Coverage plan PLC allows large payouts.
Running on farm bill may help, opposing it doesn’t hurt
Rep Collin Peterson, the Democratic leader on the House Agriculture Committee, uses his legislative successes on the 2014 farm law - retention of sugar subsidies and creation of a new dairy subsidy program - as talking points for re-election, says Bloomberg. Peterson's district leans Republican and the GOP congressional committee is spending heavily on ads to defeat him. "Farming defines the towns that dot the region’s two-lane highways. Along with (sugar) beets, the district is the nation’s biggest producer of turkeys and the fourth-biggest of corn and soybeans," says Bloomberg.
Farm sector stronger than expected in a down year
Record livestock prices and bumper crops are blunting greatly a downturn in the farm economy, said the Agriculture Department in its semiannual Farm Sector Income forecast. USDA says net cash farm income, a measure of the ability to pay bills, will drop by 6 percent this year instead of the 22 percent plunge forecast in February.
Record corn and soy crops may mean $125,000 payments
Economist Carl Zulauf of Ohio State University says crop subsidies of $30-$90 an acre are possible with record crops and farm-gate prices that average $3.60 a bushel, reports DTN.
The crop insurance/target price overlap – a policy question
When commodity prices fall, growers may collect payments from crop insurance as well as deficiecy payments from traditional crop subsidies, says economist Carl Zulauf of Ohio State University in an analysis.
Farmers to get $10 billion in economic assistance
President Biden signed a stop-gap government funding bill over the weekend that calls for speedy payment of $10 billion to farmers to buffer lower commodity prices and high production costs. Congress voted to fund the government through March 14 after a fight that showed the limits of President-elect Trump's control over Republican lawmakers.