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A Manhattan Institute commentary argues for limiting farm subsidies to large operations before the 2018 farm bill negotiations. It cites CBO estimates that commodity program costs will reach $22 billion from 2016 to 2018 and that payments will exceed $61 billion from 2017 to 2027.
Calls for subsidy cuts signal possible future reductions in commodity support, but no legislation has passed, so near-term price impact is negligible.
manhattan.instituteCharles HughesNov 21, 2017After 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, Soybeans 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 (SRW) 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.
