Current Commodity Prices Biography
Lost revenue due to low prices during the mid-1980s and late 1990s would not have been covered by crop insurance, because projected prices would have adjusted downward. Not covering these losses suggests a role for Farm Bill commodity programs. Farm Bill commodity programs can cover revenue declines of a multi-year nature due to declining prices or other factors. These have been labeled “shallow losses” because they occur before crop insurance pays, but these shallow losses are what have caused financial stress in the agricultural sector in the past.
Lost revenue due to low prices during the mid-1980s and late 1990s would not have been covered by crop insurance, because projected prices would have adjusted downward. Not covering these losses suggests a role for Farm Bill commodity programs. Farm Bill commodity programs can cover revenue declines of a multi-year nature due to declining prices or other factors. These have been labeled “shallow losses” because they occur before crop insurance pays, but these shallow losses are what have caused financial stress in the agricultural sector in the past.
One design of a commodity program that provides multi-year protection is to have the guarantee based on historical revenue. Many of the current program proposals base their guarantees on multi-year revenue. The Aggregate Risk and Revenue Program (ARRM) sponsored by Senators Brown, Thune, Durbin, and Lugar uses a five-year Olympic average of revenue where revenue equals harvest price times Crop Reporting District (CRD) yields. The Ag Risk Coverage (ARC) program that was put forward to the Super Committee based its guarantee on an Olympic average of revenue, where revenue is based on the national season average price and farm yield. The Revenue Loss Assistance Program (RLAP) proposed by Senators Conrad, Baucus, and Hoeven bases its guarantee on the Olympic average of five-years of national season average price times a farm’s historical yield.
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
Current Commodity Prices
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