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What low commodity prices might mean for future farm bill

The director of University of Missouri’s Food and Ag Policy Research Institute says lower commodity prices have mixed implications for farm programs in the farm bill.

Pat Westhoff says “the existing programs might be more likely to kick in and start to pay if low prices continue. Reference price changes and the cost of making those changes to taxpayers might be a bit different given the different point of comparison. Those are all things we’re taking into account and expect to hear an analysis on in the weeks and months ahead.”

FAPRI’s recently published food and ag outlook says total Ag Risk Coverage and Price Loss Coverage program payments are likely to remain below $1 billion this year, but increased payments in both programs are expected until 2027/2028.

Westhoff say lawmakers will reference some of the data in FAPRI’s outlook as they write the next farm bill.