The drop in commodity prices could trigger higher levels of 2019 farm program payments for producers. MinnStar Bank Farm Management Analyst and Senior Vice President Kent Thiesse is estimating a 10 to 20 cent per bushel payment for corn enrolled in the Price Loss Coverage program. Maximum Agricultural Risk Coverage corn payments could be triggered with a 22 percent or more yield decline. “I think the big surprise here is when farmers signed up, we were looking at a $3.80 to $3.85 market year average price for corn. To earn PLC payments, you had to drop below $3.70. All of a sudden, there was a combination of problems with the ethanol industry and then, piggybacking was the breakout of COVID-19. Suddenly, that market year average price projection dropped down into the $3.50 to $3.60 range.” According to Thiesse, no PLC payments are expected for soybeans, but ARC-CO payments are likely with a final RMA yield decline of two to three bushels an acre below benchmark yield. For wheat, Thiesse is forecasting a PLC payment of 85 to 90 cents per bushel, with near maximum ARC-CO payments in many areas.
News Categories
Latest RRFN Podcasts
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.