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Farmers can receive direct payments of up to $250,000 each under the new $16 billion aid program, to offset an estimated 20% drop in farm income in 2020. The government will also spend $3 billion buying fruit, vegetables, dairy and meat for donation to food banks.
Direct aid helps producers hold on to livestock and acreage, while the purchases add demand for dairy and meat that have seen sharp price drops.
agriculture.comChuck AbbottApr 20, 2020After 17 past bullish policy events, Milk (Class III) moved a median -0.6% over 5 sessions (29% higher; middle half -1.6% to +0.2%), and -3.0% over 20.
Not enough comparable past events yet for a historical read.
After 37 past bullish policy events, Lean Hogs moved a median +0.0% over 5 sessions (51% higher; middle half -2.8% to +0.9%), and +0.2% over 20.
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.
