◂ Event Timeline

Jul 31, 2023POLICYUS

Legislation Introduced to Add Farm Bill Payment Limitations

Senators Grassley and Brown introduced the Farm Program Integrity Act, which would cap total commodity support at $250,000 per farm operation. It would also require beneficiaries to spend at least half of each year in farm labor or management.

The bill is backed by taxpayer and environmental groups.

WHY IT MATTERS

A payment cap would only affect the largest operations and is at an early, introduction-only stage, so it is unlikely to change near-term crop supply or prices. It adds to the debate over how farm support is distributed.

AFFECTSCorn Soybeans Wheat (SRW)

SOURCE
northernag.netColter BrownJul 31, 2023

Price reaction & history

Cornno directional readSO FAR1d -9.5%5d -11.7%20d -13.2%

After 1,623 past policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.4% to +1.5%), and +0.4% over 20.

Jan 2, 2023Risk Management Tools Must be a Farm Bill Priority - Northern Ag Network-1.8%
Jun 16, 2023Payment limits to be reconsidered in Farm Bill | Agri-Pulse Communications, Inc.+2.2%
Apr 1, 2024Farm bill: Increased payment limits critical-4.2%
Apr 25, 20175 Things To Watch in 2018 Farm Bill and Agricultural Legislation+2.1%
May 23, 2018Farm bill negotiations may feature payment limits struggle | 2018-05-22 | Agri-Pulse | Agri-Pulse Communications, Inc.-0.5%

Soybeansno directional readSO FAR1d -2.8%5d -2.9%20d -7.1%

After 1,905 past policy events, Soybeans moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.

Jan 2, 2023Risk Management Tools Must be a Farm Bill Priority - Northern Ag Network-1.0%
Jun 16, 2023Payment limits to be reconsidered in Farm Bill | Agri-Pulse Communications, Inc.+4.6%
Jun 19, 2019Legislation to extend biodiesel tax credit introduced | Iowa Agribusiness Radio Network-1.1%
Apr 1, 2024Farm bill: Increased payment limits critical-0.5%
Apr 25, 20175 Things To Watch in 2018 Farm Bill and Agricultural Legislation-0.2%

Wheat (SRW)no directional readSO FAR1d +1.1%5d +0.2%20d -2.2%

After 1,019 past policy events, Wheat (SRW) moved a median -0.1% over 5 sessions (49% higher; middle half -1.7% to +1.5%), and +0.2% over 20.

Jan 2, 2023Risk Management Tools Must be a Farm Bill Priority - Northern Ag Network-0.7%
Jun 16, 2023Payment limits to be reconsidered in Farm Bill | Agri-Pulse Communications, Inc.+3.5%
Apr 25, 20175 Things To Watch in 2018 Farm Bill and Agricultural Legislation+3.6%
May 23, 2018Farm bill negotiations may feature payment limits struggle | 2018-05-22 | Agri-Pulse | Agri-Pulse Communications, Inc.-0.0%
Nov 4, 2020FSA Changes to Payment Limitations and Eligibility Rules+0.7%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Corn CORN · GP ▸

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Soybeans SOY · GP ▸

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