Farm bill decisions for risk management in 2023

By Chris Bruynis, Ohio State University Extension educator, Ross County

If I could accurately predict the future, I would then know which farm bill decision to elect for my farm. Even without knowing future yield and prices, I can determine what risks I face, and which are mitigated by the different farm bill programs. Each farm might have its own inherent risk related to yield and price, making the farm bill program election different for each FSA farm number.

Price Loss Coverage (PLC) 

PLC is considered a disaster loss program and covers price risk when the market year average price falls below the reference price. The reference price can adjust over time, but even with the higher prices in recent years, they will remain the same for 2023 at Corn $3.70; Soybeans $8.40; and Wheat $5.50.  The market year average price (MYA) for the 2023 crops is from harvest to the following year’s harvest (July through June for Wheat and September through August for Corn and Soybeans). … Continue reading