Tough year for US farmers?

[fjlip]

Record high corn and soybean yields in 2014 keep average prices down; low prices may trigger farm subsidies, reduction in CBO estimated savings. U.S. corn and soybean growers expect record high yields in 2014, pushing average prices down to levels that may trigger payments under provisions of the 2014 farm law. The Agriculture Department estimated 14 billion bushels of corn and nearly 4 billion bushels of soybeans this year in its Aug. 12 Crop Production report due to favorable weather conditions. The large supply has led to the lowest prices since 2010, with corn below $4 per bushel and soybeans under $11, according to the USDA Chicago Terminal. If prices remain at this level, farmers are likely to receive payments from two new commodity titles in the farm bill: Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC).
“Payments are very sensitive to prices, which are based upon how high or low yields and prices go,” Carl Zulauf, agriculture economics professor at The Ohio State University, told Bloomberg BNA Aug. 13. “If you were to look at the conditions right now there's a probability that PLC would pay for corn, ARC as well, and payments would be higher for ARC. ARC's county level pro-gram makes payments when average county revenue for a crop year is less than 86 percent of its benchmark reve-nue, said Zulauf, and PLC makes payments when the U.S. crop year average price is less than its reference price set by Congress.

And in Canada....SFA

[SASKFARMER3]

Yea greatest county in the works to farm! Ritz told us flooded guys to F$&k right off so with our shitty system SFA is what we get! Go compete against them!

[bucket]

And they are growing a large crop this year. The market has went against them for prices so the government will ensure that farmers are taken care of.

They are an economic driver.

Here in Canada they will wait until its a disaster again and come up with an ad hoc payment for a feather in their cap instead of looking for a long term solution.

And before the alberta guys blast me - remember your freight rates save you 75 cents a bushel every year. Thats alot of money over the long haul to have Saskatchewan grain to blend off at a discount.

[fjlip]

The Cons have gutted all but Crop insurance, but wait for that to happen, and they say NO more adhoc payments.
Growing Forward 2 is bankable, "an effective suite of Business Risk Management". We must get our income from the market, it "will help farmers in managing risk due to severe market volatility and disaster situations."

Guess we are NOT an economic driver, just a liability in Canada!

[hobbyfrmr]

Fjlip, I recall my first decade of farming, we were regarded as nothing more than a bunch of f&&king welfare burdens to society. Not one soul that was not a farmer carried some form of mild resentment against farmers.
People really don't think farming contributes to the provincial and national economy. Oil is sexy, mining is sexy, manufacturing is sexy, grain and beef commodities (food) are resented.

[farmaholic]

Then let them have their love affair with oil, mining and manufacturing and starve in the process.

[hobbyfrmr]

They won't starve. Grocery stores are chock full of cheap food......90 inch TV's and iTunes cards.

[farmaholic]

Hobby, ironic you should say that. In the "Harvest crews" thread, rockpile talked about teaching school kids where their food comes from. Not surprised for a second there is a need for that. Allot of kids are two to three generations away from any connection to primary ag. They have to be made aware it just doesnt magically appear on the store shelf. Unfortunately, little of the stuff on the store shelf resembles what we produce...may be hard to make the connection.

[grassfarmer]

If its so much easier in the US move - nothing stopping you.
I think you'll find farming in a more heavily subsidized environment isn't any easier - the subsidy just gets bid into land values and you waste a lot of time and resources jumping through hoops to qualify for programs.

[riders2010]

What has Wall done for agriculture?