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Soybeans marketed before January 15th not eligible for CFAP payments
The director of the Minnesota Soybean Growers is concerned the USDA Coronavirus Food Assistance Program punishes farmers who forward-contracted soybeans.
Joe Smentek says the pay is based on inventory subject to price risk held on January 15th.
“So if you were a producer who was forward-contracting, or had sold a lot of beans before that date, it’s not going to help you out at all. Even though since January we’ve seen almost a dollar drop in soybean prices.”
He tells Brownfield the big concern is that so much grain has already been marketed there’s very little 2019 crop that would be eligible.
“So this really is penalizing a lot of people that did that. And in reality, I don’t really know of a lot of people that it’s helping. There’s not a lot of people out there that had a lot of unmarketed inventory.”
Minnesota Soybean Growers president Jamie Beyer says 75 percent of the crop at her local elevator near Wheaton in west-central Minnesota is forward-contracted.
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I disagree. It a Covid-19 price adjustment benefit program. If a producer was holding crop for a late spring rally that often occurs, they were burned by the virus disruptions of a normal market. I believe that it is a relatively fair program.
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I disagree. It a Covid-19 price adjustment benefit program. If a producer was holding crop for a late spring rally that often occurs, they were burned by the virus disruptions of a normal market. I believe that it is a relatively fair program. A producer is paid on up to 50% of their production that was held past Jan 15th. I think that is fair. Grain that was sold prior to Jan 15 already received the higher price, thus the reason that those bushels won’t qualify. Again, I restate that it is a Covid-19 price adjustment benefit program and not a price support program.
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can this subsidy be collected on all unsold beans ? I sold my 19 and saved my 18 crop so I didn’t have to move two crops in one year
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If you marketed before January , why would you need help. Jan 9 beans were in excess of $9. Cry me a river.
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This is more for the hog, cattle, and dairy. The corn and bean producers. Still need the mfp payment., but it’s has been forgot about.
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This essentially hands growers with no marketing plan a lifeline. I totally understand if you have on farm storage and want to capture the carry but it does no good if you don’t make a sale to be delivered at a later date. I sold in December when the futures price was $3.92 with a $.13 basis and today’s cash price is almost a dollar less. Rewards a grower with a bad marketing plan.
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It took weeks for them to come up with a plan that helps very few……unless your a big farmer with huge bins…..when do they start to see the prices we are working with do not break even!
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There are some good points in the comments. It’s still unclear; does this wording, essentially make ineligible any 2019 crop that was marketed before January 15th of 2020?
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Does anybody know or can anybody reply is that a correct statement or do I have my dates and my interpretation wrong?Lucky or unlucky for me I’m a seed producer so I have quite an inventory of unsold beans and corn sitting in my bins that were not priced by. Some of them were priced but seed contracts work differently if the company does not take the bushels then you do not receive the premium therefore technically they are unpriced. I can produce contracts that state the above.
Anybody have any more specifics they can share
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From what I’ve read, it’s 50% of 19 crop production or 100% of your unsold inventory as of Jan 15, 2020, whichever is smaller. So if you sold 100% of your crop in 19’ then you would not be eligible because 0 bushels is smaller than whatever you produced in 19’ (remember, whichever is smaller). In my case I sold all my beans in 19’ and didn’t have any inventory of beans as of Jan 15 so I’m not eligible. I did sell a lot of corn in 19’ but held some over that I’m still sitting on. I should be electives for that corn that I’m still sitting on. That’s what I understand anyway.
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so how about if sold and renowned in options???or positions you have price risk?