Farm Bureau economist: Livestock producers need insurance
Livestock producers need the equivalent of crop insurance, American Farm Bureau Federation Chief Economist John Newton told the Crop Insurance and Reinsurance Bureau meeting.
In an online presentation, Newton said that in the 2023 farm bill there “needs to be careful consideration as to how we are reaching the livestock sector” with crop insurance-like policies. There are ways that the farm bill can be used to get crop insurance more widely utilized, Newton added.
With the increased frequency of bad weather, Newton said, the farm bill should also be used to develop policies that can address situations such as the derecho wind storm in Iowa and hurricanes and post-harvest disasters.
Dairy revenue policies have become a top 10 crop insurance product because the crop insurance industry has been delivering the policies.
Newton also said:
▪ Cattle prices have not risen due to lack of restaurant demand for higher end cuts.
▪ Ethanol industry recovery will lag until shelter-in-place orders are taken off. While the country will not turn to electric vehicles “overnight,” gasoline will be competing for a smaller share of the motor vehicle market so “on the long horizon” there are challenges for biofuels.
▪ The Payment Protection Program has been “highly effective” for small business.
▪ Several years of high commodity prices will be needed “for folks to dig themselves out of the hole” they are in due to trade and COVID-19 problems.
▪ Exports have been “phenomenal, in large part due to China” but there are concerns about orders that have not been shipped.
▪ If the China market falters, farmers can turn to markets in South Asia, but there are human rights concerns in some countries.
▪ Exports to Mexico, Canada, Japan, South Korea and the European Union are all down.
▪ Trade agreements will have “a climate component” and more groups will propose climate income streams through voluntary and incentive-based programs.
▪ Adequate labor, immigration reform, the Renewable Fuel Standard, possible changes to the Clean Water Rule also known as the Waters of the United States rule, regulatory reform and the application of swampbuster rules are all Farm Bureau priorities.
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