APCA Farmer-Owned Reserve Study 2011 NFU Fall Fly-In Washington D.C. September 12, 2011 Daryll E....
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Transcript of APCA Farmer-Owned Reserve Study 2011 NFU Fall Fly-In Washington D.C. September 12, 2011 Daryll E....
![Page 1: APCA Farmer-Owned Reserve Study 2011 NFU Fall Fly-In Washington D.C. September 12, 2011 Daryll E. Ray Agricultural Policy Analysis Center University of.](https://reader035.fdocuments.us/reader035/viewer/2022062413/5a4d1b7b7f8b9ab0599b93cc/html5/thumbnails/1.jpg)
AAPP CCAA
Farmer-OwnedFarmer-OwnedReserve StudyReserve Study
2011 NFU Fall Fly-InWashington D.C.
September 12, 2011
Daryll E. RayAgricultural Policy Analysis Center
University of Tennessee Institute of Agriculture
![Page 2: APCA Farmer-Owned Reserve Study 2011 NFU Fall Fly-In Washington D.C. September 12, 2011 Daryll E. Ray Agricultural Policy Analysis Center University of.](https://reader035.fdocuments.us/reader035/viewer/2022062413/5a4d1b7b7f8b9ab0599b93cc/html5/thumbnails/2.jpg)
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Policy DescriptionPolicy DescriptionObjectives –Bulk of revenue from market receipts–Reduce government payments while
maintaining farm income–Reduce price volatility
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Policy DescriptionPolicy DescriptionReserve Specifications for 1998-2010 Study Period– Initial corn loan rate set at midpoint
between variable and full cost of production– Indexed with a prices paid by farmers
index–Other crop loan rates set to historic
ratios with corn–Release price is set at 160% of loan rate
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Price Band for CornPrice Band for CornUsed in Farmer-Owned Reserve Study
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Policy DescriptionPolicy DescriptionReserve Specifications for 1998-2010 Study Period–Reserve maximums• Corn – 3 billion bushels• Wheat – 800 million bushels• Soybeans – 400 million bushels
– Farmer storage payment rate 40¢/bu./yr– Set-aside available if needed– Eliminate Direct Payments, LDPs, & CCPs
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8 Crops - Government Payments8 Crops - Government Payments
Historic Baseline
Reserve Policies
$ Billion
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8 Crops – Government Payments8 Crops – Government PaymentsAverage Per Year Over Each Period
Historic Baseline
Reserve Polices
$ Billion
$14.8
$4.8
$6.8
$3.6
$11.7
$4.3
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Corn PricesCorn Prices
Historic Baseline
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Corn PricesCorn Prices
Historic Baseline
Reserve Policies
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Corn PricesCorn PricesAverage Per Year Over Each Period
Historic Baseline
Reserve Policies
$2.05
$2.68
$4.02$3.71
$2.81$3.07
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Corn Exports - QuantityCorn Exports - Quantity
Historic Baseline
FOR Policies
Million Bu.
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Corn Exports - ValueCorn Exports - Value
Historic Baseline
Reserve Policies
$ Billion
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Corn Value of ExportsCorn Value of ExportsAverage Per Year Over Each Period
Historic Baseline
Reserve Policies
$ Billion
$3.9
$4.8
$8.3$7.7
$5.6$5.9
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Reserves - QuantityReserves - Quantity
Corn
Wheat
Million Bu.
Soybeans
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Corn – Value of Production plus Corn – Value of Production plus Government PaymentsGovernment Payments
Average Per Year Over Each Period
Historic Baseline
Reserve Policies
$ Billion
$26.4$28.2
$51.5
$46.5
$36.1 $35.2
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Realized Net Farm IncomeRealized Net Farm IncomeAverage Per Year Over Each Period
Historic Baseline
Reserve Policies
$ Billion
$49.8 $50.8$55.8
$51.5 $52.1 $51.1
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Summary of FindingsSummary of FindingsOver the Study Period, 1998-2010, with Reserves in Place: –Government payments 60% lower– Increased crop prices and increased
reliance on market receipts–Value of exports $4.9 billion higher– Lower price volatility benefitting:• Consumers• Crop farmers• Livestock producers and industrial users
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Agricultural Policy Analysis Center The University of Tennessee 310 Morgan Hall 2621 Morgan Circle Knoxville, TN 37996-4519
www.agpolicy.org
Thank YouThank You