Analysis: How economic assistance could affect farmers | USDA boosts specialty crop program funding by $650M | Wheat quality worsens in major producing states
Crop insurance will continue to serve as a vital risk management tool this year as the 2018 Farm Bill has been extended. The current commodity price climate will make farmers' decisions especially important, with farmers likely opting for Agricultural Risk Coverage for corn and soybeans and Price Loss Coverage for wheat, said Gary Schnitkey, farm management specialist, University of Illinois. "For corn, we've usually had PLC payments kick in at $3.70, now those payments will kick in at a price above $4," Schnitkey explained.
The $10 billion in economic assistance that some US farmers will receive under the American Relief Act of 2025 will likely help recipients with their financial planning activities while also facilitating easier loan renewal, say analysts. However, the funding could slow down needed cost adjustments and lead farmers to keep cash rents higher than they would have otherwise.
The USDA's Farm Service Agency has increased funding for the Marketing Assistance for Specialty Crops program by $650 million and raised the program's payment limit from $125,000 to $900,000. The additional funds aim to assist producers with marketing and handling costs, as well as regulatory compliance.
The USDA reported a decline in winter wheat condition ratings in key states, with Kansas seeing a drop from 55% to 47% in good-to-excellent condition as of January 5. Similar declines were noted in South Dakota, Oklahoma and Nebraska, while Montana and Colorado saw improvements.
The USDA's Crop Production 2024 Summary report released on Friday unveiled a larger-than-expected month-over-month cut in US corn and soybean production, sending futures prices higher. Corn and soybean ending stocks decreased to 1.54 billion bushels and 380 million bushels, respectively. Wheat's ending stocks grew, contradicting analyst expectations.
Apple orchards in the US are facing compounding threats from climate change, as detailed in a study in Environmental Research Letters. Key apple-growing areas such as Yakima County, Wash., are experiencing adverse climate trends that affect growth stages like flowering and fruit development, but adaptive techniques such as netting and evaporative cooling are being used to protect crops.
In observance of Martin Luther King Jr. Day in the US, SmartBrief will be closed on Monday, Jan. 20. The Crop Insurance SmartBrief will publish on Tuesday, Jan. 21.
Discontinuation of Crop Insurance SmartBrief
The Crop Insurance edition of SmartBrief will be discontinued at the end of the month with January 27, 2025, as the final issue. If you have questions, please email Laurie Langstraat.
I can assure you [crop insurance] has become a critical tool that is equally as important as the amazing technological advancements that have made our farms the most efficient and productive in the world.
