Sunday, March 02, 2008

Reverting to the Permanent Law

Prior posts have been skeptical of the practicality of reverting to the 1949 and 1938 farm legislation. USDA has released an analysis of the overall situation, including these words:

for the 2008 crop of wheat, the 1938 Act still requires the Secretary to establish acreage allotments since these allotments are part of the price support program established for wheat under the 1949 Act. One of the critical factors which the 1938 Act requires the Secretary to take into account when establishing a farm's 2008 wheat allotment is whether or not the farm had an allotment in 1958. Acreage allotments for wheat have not been declared since 1971 and USDA does not possess acreage reports dating back to 1971. Accordingly, it is unclear how USDA could meaningfully translate these historical allotments, while taking into account other required provisions in the 1938 Act, into 2008-crop price support benefits.

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