Farm News, Friday December 4, 2015

House, Senate, Pass Highway Bill

The Senate followed House action Thursday, passing the highway funding bill which includes a fix to crop insurance cuts that were included in last month's budget deal.  The bill passed the Senate 83-16 Thursday night after passing the House 359-65 earlier in the day.  The bill will reverse a $3 billion cut to crop insurance.  The White House indicated earlier in the week that the President would sign the bill once it reaches his desk.  The crop insurance cuts were part of a budget agreement passed last month that was not allowed amendments.  However, Congressional leadership vowed at the time to fix the cuts alter in the year.  The bill, formerly known as H.R. 22, the conference report on the Surface Transportation Reauthorization and Reform Act, authorizes $305 billion in spending.  It is the first five-year transportation authorization bill in more than 10 years and received support from key farm groups due to its basic provisions, which are important to rural America, and for its crop insurance provision, according to the Hagstrom Report.

World Food Prices Continue to Decline

The Food and Agriculture Organization Food Price Index dropped again in November, according to the United Nations agency.  The FOA Thursday released the price index, which averaged 156.7 points in November, down 2.6 points, or 1.6 percent from October.  Except sugar prices, all commodities included in the price index dropped under continued pressure of a strong dollar and generally abundant supplies.  Despite recent gains, sugar prices have fallen 10 percent compared to last year.  The recent increases were attributed to continued concerns over harvesting delays caused by excessive precipitation in the South-Central producing regions in Brazil.  The overall price index has dropped 18 percent since 2014.  Meat values have recorded the sharpest fall, down 23 percent compared to this time last year.

Enrollment Opening for Safety Net Programs

The enrollment period for farm safety net programs will open Monday.  The Farm Service Agency announce the enrollment period Thursday for the Agriculture Risk Coverage, or ARC and the Price Loss Coverage or PLC, program.  Producers can visit their local FSA office starting Monday to sign contracts and enroll in coverage for 2016.  The 2016 enrollment period will continue until August 1st of next year.  FSA Administrator Val Dolcini said "the choice between ARC and PLC is completed and remains in effect through 2018, but producers are encouraged to contact their local FSA office to schedule an appointment to enroll.  If a farm is not enrolled during the 2016 enrollment period, producers on that farm will not be eligible for financial assistance from the ARC or PLC programs should crop prices or farm revenues fall below the historical price or revenue benchmarks established by the program

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