Trade Relief Package Favors Soybeans

Dan Industry News Release, Soybeans, Trade

The Department of Agriculture’s trade relief package is drawing criticisms that it favors soybean production over corn.

trade reliefSoybeans, no doubt a hotter commodity for China, which is targeting U.S. ag as part of the trade war with the U.S., have a much larger payout than corn. The payments are based on 2018 production levels that must be certified and provided to USDA. For soybeans, that’s $1.65 a bushel, for 50 percent of production. For corn, it’s a one cent per-bushel payment, for 50 percent of production, or considered as a half-cent payment on total production. The payout for soybeans is estimated to reach $3.7 billion, while the payments for corn are forecasted to reach $96 million.

Texas Corn Producers Association President Joe Reed called the package a “slap in the face” to farmers working to make ends meet.

Kansas corn President Ken McCauley says of the payments, “A half-cent is no relief from the market destruction we’ve seen for corn,” adding he’s “starting to feel picked on by the administration,” citing trade and the Renewable Fuel Standard.

The payments become more troublesome for producers in drought pockets, such as Texas and Missouri, where corn production will be much lower than the rest of the nation.

Source: National Association of Farm Broadcasting News Service.