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Reference price boost included in reconciliation package

A reference price boost for farm programs is included in the reconciliation package the House Budget Committee approved over the weekend.

Jake Westlin with the National Association of Wheat Growers says the increases range from 10 to 20 percent and vary by commodity.

“The same as what was included in the farm bill reported out of the committee one year ago where the wheat price went from $5.50 to $6.35.”

Other reference price updates include: corn at $4.10/bushel, soybeans at $10/bushel, cotton seed at 42 cents per pound, rice at $16.90 per hundredweight and grain sorghum at $4.40/bushel. These are reference price boosts considered in 2024 farm bill discussions.

Ag groups including the American Soybean Association, National Cotton Council and National Corn Growers Association say the reference price updates are much needed.

But Wayne Stoskopf with NCGA says corn growers remain concerned about the possible impacts of changes to USDA’s Price Loss Coverage program.

“Corn growers will be facing, if this becomes law, a new floor price embedded within PLC. This would cap the downside of PLC at $3.30.”

While corn is getting a slightly higher reference price, Stoskopf says the corn payment is capped more than any other commodity.

He says NCGA is optimistic the provision can be removed as the bill advances in the House. He says U.S. Representative Nikki Budzinski from Illinois tried to amend the issue in the bill’s mark up, but “it wasn’t voted on.”

It’s unclear how long it will take the U.S. House to pass the One Big Beautiful Bill Act. Stoskopf says the U.S. Senate is also working on their version of the reconciliation package and there will be pressure for the Senate to pass it before the August recess.