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USDA Under Secretary Bill Northey explained the formula for the second Market Facilitation Program round, saying it was designed so farmers could plant any crop without affecting county payments. He acknowledged the timing delay in releasing details.
Planting-neutral payments reduce distortions in crop mix, so the formula has little direct price effect on feed commodities.
farmpolicynews.illinois.eduKeith GoodJul 29, 2019After 439 past neutral policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.3% to +1.2%), and +1.1% over 20.
After 554 past neutral policy events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.4% to +1.6%), and +0.6% 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.
