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South Central Iowa | No, first, that’s the purpose of WASDE’s: to assure the market that we always have an abundant supply to cover needs and skew price lower. Second, it’s a different agency, crop insurance is RMA, WASDE’s et al. are WAOB and NASS. Third, crop insurance is intended to be an inducement to plant, so it’s purpose has always been to enlarge the supply.
Problem with the WASDE’s is the rubber will meet the road this year and that will harm downstream users and the image of ethanol. Problem with crop insurance this year is even though PP is intended to be limited enough (60% of coverage) to encourage planting, the lack of inputs and unprecedented nature of the weather event may leave people without other alternative, unless the coverage window is extended to aide what will likely be the planting of a claim. | |
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