• Condensed by Lynda Kiernan

Market Prices Could Trigger Up To $7.2B in Subsidies to U.S. Corn and Soybean Growers


Plunging market prices for this year’s corn and soybean crops could trigger subsidies up to $7.2 billion to U.S. growers.

Attention has been focused on the current administration’s bail-out payments totaling $23 billion to farmers and ranchers that were approved to mitigate the fallout related to the ongoing trade war with China affecting 2018 and 2019 production. Of the $2 trillion relief package associated with COVID-19, Sonny Perdue has said that farmers would receive $16 billion through one-time payments, however, unofficial reports have estimated payments to farmers at $3.9 billion.

However, demand destruction caused by the pandemic is a growing concern, and examining futures prices for corn and soybeans both before and after the spread of coronavirus, economists tentatively believe subsidies could range between $3.9 billion and $7.2 billion, depending on the correlation between futures prices in May to cash prices when farmers sell their crops.

More on this story

Contribute an article

Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@highquestgroup.com.

©2017 HighQuest Group. All rights reserved.

  • LinkedIn Clean
  • Twitter Clean
  • YouTube Clean
  • Google+ Clean