Nov 19 (Reuters) – U.S. farmers are about to reap a bumper harvest not just in corn and soybeans but also in new subsidies that could soar to $10 billion, blowing a hole in the government’s promise that its new five-year farm bill would save taxpayers money.
Because of ample supplies, corn prices have fallen well below the long-term average price used as a benchmark for one of the new programs. Ironically, this year’s bumper harvest may not be large enough to compensate for those price falls and revenues for some farmers could be low enough to trigger payments.
“Crop insurance has drifted away from that basic safety net concept and the farm bill has taken it even farther away.”
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