URBANA, IL -There is no expectation that the significant federal support the agricultural industry has received over the past four years will continue in 2022.
According to a recent FarmDocDaily report from University of Illinois agricultural economist Krista Swanson, the payments that were intended to offset losses associated with trade policy, natural disasters, and the Covid-19 pandemic have averaged almost $20 billion per year since 2018.
Improved crop prices across the board for corn, cotton, sorghum, soybean, and wheat are implying positive returns for grain producers, however, record-high input prices may pressure the potential for many farmers.
In the report, Swanson asks whether “conditions that justify additional ad hoc support for U.S. farmers (will) surface again in 2022, or will the existing farm safety net of commodity and crop insurance programs be sufficient?”
This question may drive the debate in the new year as Congress begins the process of writing the next Farm Bill, especially on the heels of unparalleled federal spending over the same period, potentially forcing tighter budgetary concerns.
For more information: https://farmdocdaily.illinois.edu/2021/12/ifes-2021-policy-update-for-2022.html
(SOURCE: All Ag News)
