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| Peterson said that the WTO was the reason it was not included in the final draft. Originally it was in the farmbill but was switched to historical base acres instead of planted acres. My area farms mainly rice and soybeans. A lot more payment for rice if prices are below the trigger. Some farmers had been planting all rice for a few years before the bill so they could switch their base acres to rice acres. They just could not switch more than they had been growing or have increase in overall base acres. Those farmers will receive a lot more support pay now than under the direct pay program. I am a very small farmer and my pay last year was around $5,000 more than under the direct pay program. My fear with planted acres is massive overproduction for crops like rice. We average around 3 million acres of rice per year. This year a little more and we are $2 bushel below support price. With just 100,000 more acres, prices would be drastically lower. But if we are guaranteed $6.30 a bushel for all planted acres instead of only base acres, we have no incentive to cut acres. Just grow more and collect the support pay on 85% of what we plant.
Edited by jblands 2/11/2017 10:12
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historic base acres vs planted acres
