The farm bill analysis released by the Food and Agricultural Policy Research Institute at the University of Missouri looks at three alternatives to a current farm policy baseline to see how different commodities might be impacted. The first scenario retains all assumptions of the baseline except that the Direct Counter-cyclical and Average Crop Revenue Election programs are eliminated beginning with the 2013 crop year. The analysis shows that at one extreme – soybean producers would lose 11-dollars per base acre in DCP payments and three-dollars per planted acre in ACRE payments. At the other extreme – rice producers would lose 96-dollars per base acre in DCP payments. The report states that corn producers would lose more payments per acre than wheat producers in absolute terms – but the proportional effect on wheat producer income would be greater because of the market value of corn production per acre versus that for wheat. Eliminating DCP and ACRE also results in a slight increase in market prices. This increase in the value of market sales does offset a small portion of the loss in government payments. Still – the report shows that market receipts and government payments fall considerably relative to the baseline.

Scenario 2 introduces the new ARC and STAX programs in 2013, eliminates DCP and ACRE and revises the cotton marketing loan to allow the loan rate to decline under certain conditions. FAPRI estimated average ARC payments at about 20-dollars per acre for corn, 10-dollars per acre for soybeans, seven-dollars per acre for wheat, 16-dollars per acre for rice and 14-dollars per acre for peanuts. The STAX net indemnities average 41-dollars per acre. The report notes that payments can be quite large when the decline in revenues relative to a benchmark is large enough – but many STAX and ARC outcomes result in no payments to producers. The averages reported reflect the distribution of possible benefits – including outcomes where no payments occur – and where they are at their maximum value.

The report says the difference between base acreage and planted acreage has important implications for the net effect of the program changes for returns on particular farms. Those with a lot of base acreage relative to planted acreage will be most affected by the loss of DCP payments – while those with more planted acreage than base acreage are more likely to benefit from the shift to ARC and STAX.

In the final scenario – the FAPRI report makes the same assumptions as Scenario 2 – but introduces the new lower cap on CRP enrollment. To see the full report – visit www dot fapri dot Missouri dot edu (www.fapri.missouri.edu). You’ll find a link right there on the homepage under the heading recent work.

Just as the Senate prepares to debate the 2012 Farm Bill – the Environmental Working Group is out with new crop insurance analysis that shows 10-thousand individual farming operations have received premium subsidies that range from 100-thousand dollars to more than one-million dollars each in the last year. According to a news release – it’s the first time EWG analysts have obtained information about crop insurance policies and premium subsidies for individual policyholders in each state and county. EWG is reporting the number of policyholders receiving varying levels of premium subsidies – as well as details about 26 operations receiving more than a million dollars in premium subsidies. The group also reports that 80-percent of policyholders received crop insurance subsidies worth just over five-thousand dollars each.

Following the release of their crop insurance study – EWG called on Senators to take action during the farm bill debate to allow USDA to release names of beneficiaries – and introduce amendments to place restrictions on insurance subsidies going to large farming operations. USDA’s Risk Management Agency is currently not permitted to disclose the names of the insured – and EWG says the lack of knowledge should be disturbing to Congress. Before the 2012 Farm Bill hits the floor – EWG President Ken Cook says Senate Ag Committee leaders should lift the veil of secrecy. He goes on to say we must stop giving big payouts that guarantee income to big agribusiness and pass a fair and equitable farm bill that makes meaningful reforms to crop insurance, feeds the hungry and improves the environment and public health. EWG officials are expecting several Senators to introduce amendments to restrict crop insurance – including proposals to means-test crop insurance subsidies, challenge the amount of subsidy flowing to crop insurance companies and agents and require farmers to protect wetlands, grasslands and soil if they are to receive subsidies.

According to the EWG – of the top 10 crops receiving premium subsidies in excess of one-million dollars – corn ranked first, potatoes second, soybeans third and tomatoes fourth. Apples, onions and grapes were also in the top 10. An Iowa-based EWG official was surprised to see the extent to which specialty crop industries were benefitting. The organization has repeatedly said the farm program disproportionately supports commodity producers.

National Farmers Union President Roger Johnson says U.S. farmers can create an opportunity to make a tremendous positive impact on the environment by producing advanced biofuel from grain sorghum. That’s why he calls the recent publication of data concerning biofuels produced from grain sorghum under the Renewable Fuel Standard Program a step in the right direction. The RFS2 was passed in 2007. It requires the production of 36-billion gallons of renewable fuels from conventional and advanced sources of biofuel by 2022. Johnson says NFU policy supports the increased use of renewable fuels – as it will increase domestic demand for surplus farm commodities, lower federal outlays of federal farm subsidies, decrease the country’s reliance on foreign oil and create opportunities in rural communities across the nation. National Farmers Union will submit comments to the EPA in support of approving grain sorghum for use as an advanced biofuel.

WICHITA, Kan. (AP) – Kansas farmers are finding wide variations in quality and yield after nearly a week of the winter wheat harvest.

The latest daily bulletin put out Wednesday by industry groups reported the harvest 30 percent complete in Pratt County. The elevator in Iuka (eye-U’-kuh) reports good yields in that area, with most fields averaging between 40 and 45 bushels per acre.

Farmers around Hoisington in Barton County have been cutting for four days, and the crop in that area is not doing as well as expected. But farther east around Marion, where the harvest is about 25 percent complete, the local elevator reports crop quality is good.

Kansas Agricultural Statistics Service reported this week that the harvest is the earliest in the state since it started collecting data in 1952.

ST. LOUIS (AP) – The Army Corps of Engineers has awarded contracts to three firms for work to repair the Birds Point levee in southeast Missouri, a levee intentionally breached by the corps at the height of spring flooding in 2011.

The repair work of up to $20 million goes to companies from Poplar Bluff, Mo., Little Rock, Ark., and Hickman, Ky. Corps Memphis District commander Col. Vernie Reichling said Thursday that other contracts will be awarded this year to repair flood damage near the confluence of the Mississippi and Ohio rivers in Kentucky and Illinois.

The corps breached the Birds Point levee in May 2011 to lower water level, in part to save neighboring Cairo, Ill. The breach damaged 130,000 acres of Missouri farmland and damaged several dozen homes.