Initial Impressions of the Farm Bill

Dec. 19, 2018

There are several opportunities in this farm bill to help with farm level cash flow: reduced dairy premiums and refunded MPP premiums along with higher direct ownership and operation loan caps and higher marketing loans for grains and oilseeds. This bill was also, in their minds, positive for livestock with the previously mentioned dairy changes but also the inclusion of a disease response program and vaccine bank that livestock groups have advocated strongly for inclusion. Of the changes to ARC and PLC. It does not appear that many Ohio producers will see an increase in PLC yields when given a change. Some will, but most will not. Higher PLC yields lead to higher payments. The reference price escalator provision seems to be most likely for soybeans out of corn, soybeans and wheat, but even then it’s a greater probability that the reference price will stay the same instead of increasing.   

Access the full Ohio Grain Symposium Presentation.

 

Tags: