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A Congressional Research Service overview describes the current US farm commodity support programs under the 2014 farm bill. It covers Price Loss Coverage, Agriculture Risk Coverage and Marketing Assistance Loans, which pay out when prices or revenue fall below set levels.
These counter-cyclical payments cushion producer income when prices are low, which can keep acreage planted even when market prices are weak. The overview is background and does not signal a new price driver.
everycrsreport.comApr 17, 2018After 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.
After 1,905 past policy events, SOY moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.
After 1,019 past policy events, WHEAT moved a median -0.1% over 5 sessions (49% higher; middle half -1.7% to +1.5%), 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.
