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NCGA considers increasing reference prices

The National Corn Growers Association says the next farm bill needs to include crop insurance coverage that is reflective of actual prices.

Wayne Stoskopf, director of public policy, tells Brownfield the statutory reference price for corn is $3.70 and well below the current farmgate price.

“We know that the cost of production and the challenges that growers are facing on input costs, in particular, means that’s not necessarily the best level of protection,” he says.

A recent analysis by ag economists at the University of Illinois and Ohio State University goes further.  They suggest changing the parameters of the calculations used to determine prices that could better adjust to market conditions.

The Senate Ag Committee held a farm bill hearing Thursday on commodity programs, crop insurance, and credit.