◂ Event Timeline

Nov 4, 2020POLICYUS

FSA Changes to Payment Limitations and Eligibility Rules

USDA's Farm Service Agency published a final Payment Limitation and Payment Eligibility Rule on August 24, 2020, effective August 20. The rule removes marketing loan gains and loan deficiency payments from the $125,000 payment limit and raises certain caps.

It implements changes from the 2018 Farm Bill.

WHY IT MATTERS

Higher or removed payment caps let large operations receive more support, which could sustain production levels, but the effect on commodity prices is limited.

AFFECTSCorn Soybeans Wheat (SRW)

SOURCE
agrisk.umd.eduNicole CookNov 4, 2020

Price reaction & history

Cornno directional readSO FAR1d +0.6%5d +1.8%20d +8.9%

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.

Aug 24, 2020Federal Register :: Payment Limitation and Payment Eligibility+3.3%
Apr 2, 2019U.S. Farm Program Eligibility and Payment Limits Under the 2018 Farm Bill (P.L. 115-334) - EveryCRSReport.com-1.2%
Jun 16, 2023Payment limits to be reconsidered in Farm Bill | Agri-Pulse Communications, Inc.+2.2%
Jul 31, 2023Legislation Introduced to Add Farm Bill Payment Limitations - Northern Ag Network-11.7%
Oct 3, 2017USDA Issues Farm Safety Net and Conservation Payments-0.7%

Soybeansno directional readSO FAR1d +1.9%5d +7.5%20d +8.9%

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.

Aug 24, 2020Federal Register :: Payment Limitation and Payment Eligibility+5.5%
Apr 2, 2019U.S. Farm Program Eligibility and Payment Limits Under the 2018 Farm Bill (P.L. 115-334) - EveryCRSReport.com+0.4%
Jun 16, 2023Payment limits to be reconsidered in Farm Bill | Agri-Pulse Communications, Inc.+4.6%
Jul 31, 2023Legislation Introduced to Add Farm Bill Payment Limitations - Northern Ag Network-2.9%
Feb 13, 2020European Parliament calls for rules to end imported deforestation - Fern+0.0%

Wheat (SRW)no directional readSO FAR1d -0.1%5d +0.7%20d -5.9%

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.

Aug 24, 2020Federal Register :: Payment Limitation and Payment Eligibility+2.8%
Apr 2, 2019U.S. Farm Program Eligibility and Payment Limits Under the 2018 Farm Bill (P.L. 115-334) - EveryCRSReport.com+3.6%
Jun 16, 2023Payment limits to be reconsidered in Farm Bill | Agri-Pulse Communications, Inc.+3.5%
Jul 31, 2023Legislation Introduced to Add Farm Bill Payment Limitations - Northern Ag Network+0.2%
Oct 3, 2017USDA Issues Farm Safety Net and Conservation Payments+4.7%

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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