Death comes to us all. Life's but a walking shadow | While everybody is distracted by all the other crises some people are starting to seriously think about the 2018 Farm Bill. It is becoming more & more apparent that excess production is the biggest cause of low prices. And every year the yield trend just increases making the problem that much worse. Clearly anything that insulates the producer from the effects of declining prices, crop insurance, crop subsidies, CRP, etc. prevents producers from having to deal with the reality of overproduction. The two programs that have the largest effect are ARC/PLC and crop insurance. 2016 ARC/PLC payments were about $9 billion, crop insurance was $8 billion. You can expect those programs to cost more this year. In addition, if I remember correctly, the $250,000 maximum income limit as well as the $375,000 maximum insurance payment limit failed last time. Those two amendments would disadvantage the BTO's big time.
How many producers would be willing to forgo one or the other or both of these programs if it would lead to a voluntary cut in production and better prices? |
Let's not forget the Farm Bill.
