By Andi Anderson
A new report from Michigan State University Extension finds that farm bill programs are offering limited support to Michigan growers in the 2022 production year. The report says that this is due to a number of factors, including high commodity prices and low yields.
The report, which was released on October 16, 2023, analyzed data from the U.S. Department of Agriculture (USDA). The report found that payments from Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC-CO) were both low in 2022.
PLC payments are triggered when the market year average price for a crop falls below a statutory reference price. ARC-CO payments are triggered when the actual county revenue for a crop falls below a coverage guarantee.
The report found that there were no PLC payments made to Michigan growers in 2022. This is because market year average prices for corn, soybeans, and wheat were all above their respective reference prices.
There were some ARC-CO payments made to Michigan growers in 2022, but they were relatively low. The report found that the average ARC-CO payment for corn was $41.90 per acre, the average ARC-CO payment for soybeans was $16.75 per acre, and there were no ARC-CO payments made for wheat.
The report says that the low level of support from farm bill programs is a concern for Michigan growers. The report says that the limited support is due to a number of factors, including high commodity prices and low yields.
The report says that high commodity prices have made it difficult for farm bill programs to trigger payments. The report also says that low yields have reduced the overall amount of revenue that growers are generating, which has also made it difficult for farm bill programs to trigger payments.
The report says that the limited support from farm bill programs is a concern for Michigan growers because it makes them more vulnerable to economic shocks. The report says that growers should consider using a variety of risk management tools to protect themselves from economic shocks, such as crop insurance and futures contracts.
The report also says that the limited support from farm bill programs is a concern for Michigan consumers. The report says that the limited support could lead to higher food prices in the future.
The report concludes by saying that the limited support from farm bill programs is a reminder of the need for farm policy reform. The report says that farm policy reform should focus on providing more support to growers during times of economic hardship.
Categories: Michigan, Government & Policy