Reference price increase included in House Ag Committee’s farm bill

An increase in reference prices is included in the new farm bill the House Agriculture Committee will mark up on Thursday and a U.S. Congressman from South Dakota says it’s a much-needed change.

Dusty Johnson says this is the biggest reinvestment into the commodities title since 2002.

“The reference price increase will vary by commodity. Just as an example for soybeans it will be 18%, wheat it will be 15.5% and corn will be 10%. That’s all data-driven. It’s not playing favorites, it’s just acknowledging how far behind the last farm bill’s reference prices have gotten.”

Johnson says there’s also a voluntary base acre update.

“Typically, in corn country we’re going to make sure we’re using good data and getting the right acres in the base. That will help as well.”

Johnson says the Commodity Credit Corporation funds will help pay for the increases and he’s optimistic Democratic lawmakers on the committee will support those increases heading into Thursday’s farm bill markup.

Click here to read the full draft of the farm bill released by the House Ag Committee.

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