Insights into Safety Net Programs and Decisions

Insights into Safety Net Programs and Decisions
Associate Professor and Extension Policy Specialist
Planter in field.

Loren King/Unsplash

This article was first published by Nebraska Farmer on Feb. 5, 2021.

In early 2021, producers may be looking to a new growing season and cropping decisions ahead with more anticipation, given the recent rally in many commodity prices. However, there are still numerous management and program decisions to make to help address risk and establish a safety net to protect the year ahead.

Producers have multiple tools to manage production and marketing risk, including the ongoing 2018 Farm Bill commodity programs, existing and new crop insurance policies, and of course, marketing tools to build their risk management strategies.

Commodity programs

The Price Loss Coverage and Agricultural Risk Coverage (ARC) programs continue for 2021, but with a new decision for producers for 2021 (and every year thereafter) if they wish to change enrollment. The programs haven’t changed, but changing market conditions could change producer preferences. Consider corn as an example with new-crop December 2021 futures price trading around $4.50 per bushel as of late January.

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