Crop insurance adjustments could boost crop production
Adjustments to crop insurance could boost U.S. crop production and alleviate some market pressure.
University of Missouri ag economist Ben Brown said the Biden administration’s interest in increasing crop production and acreage could offset conflicting factors like rising loan rates.
“The conversation now has switched to ‘how do we use crop insurance to increase production’,” Brown said. “And I think some of [the administration’s] proposals actually have potential to bring some acreage into production. Which, larger acreage in the United States would lower prices here in the United States and globally.”
He tells Brownfield reducing or removing crop insurance penalties on double crop ground would likely boost soybean and wheat production.
“Can we take prevent plant on corn or something and plant another crop without being penalized for the prevent plant claim,” he said. “To me, those seem to have, maybe, some potential to bring some double cropped acres into winter wheat and soybeans.”
Brown said lower Conservation Reserve Program acreage year over year highlights the push to bring more acreage online. Although, he says CRP acreage isn’t quality crop ground.
Brown made his comments on this week’s Brownfield Weekly Commodity Market Update.