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Proposed FARM Act would have major impact

An ag economist at the University of Illinois says the latest agricultural aid package proposed in Congress would have a major impact if passed as currently constructed.

Gary Schnitkey says the $21 billion FARM Act, or Farmer Assistance and Revenue Mitigation Act of 2024, would bring significant payments to most producers.

“The corn payment, according to our calculations, would be $100 per acre.”  He says, “Soybeans would be $49 per acre, wheat would be $85, and cotton would be $200 an acre.”

He tells Brownfield those types of payments would be a boon for most producer’s profitability projections. 

“If farmers are looking at what their net incomes would be without this, we think it’ll be negative for many farms.”  He says, “This package would change that dynamic considerably.”

However, Schnitkey says Congress has a full plate in the upcoming lame duck session.

“In any case, these payments will be delayed and won’t happen quickly, so don’t pencil it in, but it is something to keep in mind,” he says.

He says even if negotiations fail on the FARM Act, he believes an ag relief package will likely be tied to some type of hurricane disaster relief bill.

AUDIO: Gary Schnitkey – University of Illinois