Tuesday, January 31, 2012

Lower Crop Prices in the Future and the Farm Bill

That's what the CBO is projecting. according to this Bloomberg piece.  Corn cash prices down to $4.54?  That's not going to help farm bill prospects: some people will worry about lower prices, others (urban) will point to past high prices.

Meanwhile, FSA's friends over at the Farm Bureau are worrying about implementation--from Farm Policy:
“We have serious concerns about the other proposals floating around, which dictate different rules, different crops and different payments. Not only would such programs be a nightmare for local Farm Service Agency offices to administer, but farmers would have the ability to cherry-pick which program works best for them. Because of distortions in price, we’d have a system of farmers deciding what to produce based on government payments rather than market signals.”

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