Posted 3/26/2020 08:21 (#8139765 - in reply to #8139514) Subject: RE: How to calculate MFP price?
In the grains it was based off previous years production. Crop farmer goes to FSA says I produced 90,000 bu beans last year, got paid 85c per bu or whatever it was = 76,500
The individual cap I thought was 125,000$
If the same logic is applied to beer you self certify how many calves, feeders, fats you produced last year and there is a payment rate per category.
The cap on payments keeps the commercial feeder from collecting the majority of the funds even though they feed the majority of the cattle
They do it off last years production to not influence this years production.
In the grains though, you get a lot of producers basically planning on an additional payment to come the next year (because the administration signals/not guarantees that there will be one) and production stays up plenty high
Edit: I wish they subsidized beer!! We would be sitting on a gold mine