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Should production cost be factored into the next farm bill?

Farm leaders are debating adjustments to crop insurance in the next farm bill.  

National Association of Wheat Growers CEO Chandler Goule says refence prices need to be higher. “The farm bill has got to protect against the increase of cost of production so yes I’m talking specifically about PLC and reference prices have got to come more in line with what our true cost of production truly is otherwise it’s not truly a safety net.”

American Soybean Association CEO Steve Censky says Congress has traditionally considered the cost of production. “Obviously, you have to take into account when you set reference prices for commodities, what should those be to have that kind of safety net for producers and the cost of producing a commodity maybe one component of that.”

Goule and Censky made their comments during a commodity group CEO press panel at the 2022 Commodity Classic in New Orleans.

Brownfield’s Kellan Heavican contributed to this story.