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 Brent Gloy
Increases in agricultural productivity and aggressive expansion of cropland acres have made increased demand growth critical to improving the economic situation in agriculture. With that in mind we thought it would be interesting to look at some of the trends in global corn consumption. Continue reading
by David Widmar and Brent Gloy
If you ask three economists the same question, you’re likely to get (at least) three different answers. While soybean acres seem to have an advantage going into the Spring, particularly in Indiana and the Eastern Corn Belt, we thought it would be valuable to evaluate university crop budgets from across the Corn Belt. This week’s post takes a look at recent crop budgets and why additional soybean acres in 2017 might not be a clear winner for producers in all regions of the country. Continue reading