The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
Texas A & M just published a very good report on the key differences between the House and Senate Farm Bill. The report indicated that for almost all farmers, the House version of the farm bill would provide more revenue over the five year period than the Senate version and in the case of lower prices, the House version would be substantially more than the Senate.
The primary reason for this is as follows:
The report ran various scenarios based upon representative farms across the US. As an example, it ran the numbers for a 1,725 wheat farm in the Palouse country of Washington state. The total amount of expected payments under each Bill is as follows:
As you can see, the House will with the PLC option appears to be the best scenario for this farmer under either a baseline or the declining price assumption. The conclusion of the report is that in almost all cases, the House PLC option was best for all farmers.
There is a lot of data in the report and we know that the final bill will not look exactly like the two current options, but it should be somewhere in between.
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