Congress is struggling to pass a new Farm Bill- which is required once every 5 years. This important piece of legislation provides funding for important agricultural and environmental programs which support our farmers as well as funding for programs that help put food in the hands of folks who need it most.
What’s the Hold Up?
A major faultline in the Farm Bill negotiations is a proposal to increase “reference prices” for farms covered under the Price Loss Coverage (PLC) program. “Reference prices” are the baseline payouts that a farm would receive should a dip in the market price of their commodity cause them losses. Only farms which produce a handful of crop types, such as corn or soybeans, can benefit from PLC. Many types of crops, including fruits and vegetables, are left out of this type of insurance coverage.
At first glance, an increase in the compensation a farm receives for their losses may sound like a good thing. Farming is a risky business, after all. However, the current proposal for reference price increases would raise the cost of the PLC by an estimated $20 to $50 billion. Since the PLC makes payments based on the number of acres a farm has enrolled in the program, larger farms have the opportunity to benefit more than smaller ones.
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Categories: Missouri, Crops