USDA’s latest season-average price forecast was released yesterday, which included a forecast of Price Loss Coverage (PLC) program payments based on the formula model. The big takeaway is that there won’t be PLC payments in 2023/24 for corn, wheat, or soybeans, based on UDSA’s forecast prices of corn at $5.00/bushel, wheat at $7.63/bushel, and soybeans at $12.98/bushel. The PLC program provides payments to farmers who have base acres of covered commodities. The payments are made on a commodity-by-commodity basis when the annual average national market price falls below the “reference price” specified in the farm bill. The payment rate is the difference between the reference price and the market. The formula i...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.