by John Duff (Ethanol Producer Magazine/National Sorghum Producers) A drastically changed farm economy means the next bill will likely be very different than past ones. … — It is hard to believe the current Farm Bill expires in less than 18 months. Considering the arduous path to approval taken by the Agricultural Act of 2014 (the first field hearing was held in Lubbock, Texas, in early 2010), it is ironic many of the bill’s programs reached the end of their useful lives so quickly. There are several reasons for this, but the primary culprit is a drastically changed farm economy. Although many new proposals have included minor adjustments to current programs, stakeholders—especially ethanol producers—must keep in mind the next Farm Bill is likely to look much different than past ones.
Figure 1 illustrates the decline in profitability for sorghum producers. The situation for corn producers is no better, and the Food and Agricultural Policy Research Institute projects this situation will not change anytime soon. It is hard to comprehend the magnitude of this change in farm fortunes in the U.S. since the current bill was enacted. The high point in return over variable costs, depicted in figure 1, is 126 percent higher than the projected low point. With commodity program payments at their lowest levels in a quarter century, many producers are already in need of assistance. Unfortunately, due to the structure of current key Farm Bill programs, not only has this assistance declined, but the decline itself will place significant constraints on the architects of the next Farm Bill as well.
It is fitting the agriculture committees are in dire financial straits, given the producers they represent are facing their worst losses since the 1980s.
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How will the next Farm Bill look given all the changes needed and the lack of baseline funding? There has been no shortage of proposals so far. READ MORE and MORE (Agri-Pulse)