Farm Policy blog highlights current decisions from inside the government that will impact total acres available for crop production and raise risks for producers. The policy decisions happen to be connect by the fact that money flows from the insurance program to the Conservation Reserve Program (CRP) for the purpose of getting CRP acres back up to the maximum allowed by law, 32 million acres. Apparently, because of the tactics being used, tempers are really flaring up.
Although these two decisions are not bullish by themselves, cutting the ability to purchase crop insurance raises risks of financial ruin for producers. Additionally, the market probably didn't need to hear that we will spend money to reduce crop acres when the market is still sensitive to the competition for acres as driven by the ethanol industry.
Read at FarmPolicy.com
http://www.farmpolicy.com/?p=2890
