By Gary Schnitkey, Krista Swanson, Ryan Batts and Jonathan Coppess with the University of Illinois Department of Agricultural and Consumer Economics University of Illinois and Carl Zulauf, with the Ohio State University Department of Agricultural, Environmental and Development Economics
We stand at a point of extreme price and policy uncertainty. In the Midwest, corn planting is historically late and many acres are or soon will be eligible for prevented planting payments on corn crop insurance policies. On many farms, corn prices have not increased enough to cause net returns from planting corn to exceed net returns from prevented planting. However, the U.S. Department of Agriculture announced a 2019 Market Facilitation Program (MFP) and has currently indicated that payments will be tied to 2019 planted acres. The 2019 MFP could provide incentives to plant crops and not take prevented planting payments. Moreover, this program could bring a little used option into play this year: take 35% of the corn prevented planting payment and plant soybeans after the late planting period for corn.… Continue reading
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