Billions of Dollars in Corn Program Payments and 2014 Plantings Impact Could Also Have Farm Bill Implications
Those analysts scoring farm bill and farm program costs in the Congressional Budget Office and the Obama administration (USDA, OMB) have not yet revealed a major issue ahead – the billions of dollars in corn-related payments likely for the 2014 crop. The “baseline” projections must assume current policy – and that policy allows farmers to enter the Average Crop Revenue Election (ACRE) program. While few producers enrolled in that program via the 2008 Farm Bill and its one-year extension for 2013, that would not likely be the case if they are allowed to in 2014, what with low to very low prices expected for corn during the 2014 crop season. That means the budget baseline could or would show around $5 billion or so in ACRE-related payouts, depending on ACRE participation.