by Brent Gloy
Last week we looked at how benchmark or Olympic average yields have changed since the start of the ARC-CO program. This week we will examine how ARC-CO revenue guarantees have changed across the country. Again, we will see that the results differ widely across the country. Continue reading
by Brent Gloy
Direct farm program payments have again become a critical component of net farm income. In 2016 direct farm program payments are forecast to account for $13 billion of the sector’s $68 billion (19%) of net farm income. At $5.9 billion the ARC-CO program is by far the largest category of direct farm program payments.
As we have discussed before, the price guarantees of the ARC-CO program have already begun to decline and this decline will likely accelerate for the 2017 crop year. However, ARC-CO is a revenue based program, so guarantees are also dependent upon county level yield histories. Given that the U.S. has harvested three very large corn and soybean crops in a row, we thought it would be interesting to see how the county level yields have changed over the course of the program. Continue reading
by David A. Widmar
We have frequently written about the expansion and subsequent contraction of the U.S. farm income. While most of our previous work has focused on sector-level trends across the U.S. farm economy, we have anecdotally noted these trends likely vary at the local, state, and regional levels. Thinking about these variations, we previously looked at how changes in farmland values have varied across the country. To provide more insight on the variations in the farm economy, this week’s post considers state-level changes in net farm income during the boom and contraction. Continue reading