Increasing per-acre corn payments for commodity title programs will have a much more significant effect on total Federal outlays than other crops because corn has many more base acres. Seed cotton, rice, and peanuts have lower base acres; hence, spending increases tend to have much less impact on total Federal outlays. As a result, seed cotton, rice, and peanuts often have larger per-acre increases in spending than does corn. This process is illustrated with the House Proposal for the Farm Bill.

Over the last three decades, we’ve seen considerable evolution in the extent of use and the tools employed in what we call precision agriculture. The following discussion highlights some of those developments. While interesting, the purpose of reviewing this experience is to suggest insights for the future.

In 2023, the total noncapital living expenses of 1,345 farm families enrolled in Illinois Farm Business Farm Management averaged $97,100–or about $8,000 a month for each family. This average was about 6% higher than in 2022. Another $8,762 was used to buy capital items such as the personal share of the family automobile, furniture, and household equipment. Thus, the grand total for living expenses averaged $105,862 for 2023 compared with $98,833 for 2022, or a $7,029 increase per family.

Our analysis of working capital trends reveals significant improvements in liquidity positions over the past two decades, driven primarily by commodity price cycles and their impact on current assets. The most notable increases occurred from 2019-2022, when median working capital more than doubled. The 2023 decline in working capital, while modest relative to historical levels, serves as a reminder that farm liquidity positions remain sensitive to commodity market conditions and input costs.

As indicated in recent farmdoc articles, US farmers, as a group, will incur notable economic loss in 2024, resulting from the systemic market risks of declining revenue and prices while costs remain high. This article continues the assessment of the FARM (Farmer Assistance and Revenue Mitigation) Act of 2024 initiated in the November 4, 2024 farmdoc daily. FARM’s coverage of current estimated 2024 economic loss varies considerably by crop, potentially prompting the “fairness issue.”

The price discovery period for the Harvest Prices used to determine crop insurance indemnities for revenue products concluded at the end of October. The 2024 harvest price for corn is $4.16 per bushel, $0.50 or 11% lower than the projected price of $4.66. The 2024 harvest price for soybeans is $10.03 per bushel, $1.52 or 13% below the projected price of $11.55. The harvest price declines for corn and soybeans in 2024 are not sufficient to trigger individual farm revenue coverage payments.