Corn and Soybean EFR Might Go Up Afterall
In my previous post we indicated that corn Effective Reference Price would not rise much under Senate Proposal. We were off a bit.
The Senate Ag proposal was released yesterday and in our post we indicated that the Senate change to the calculation of the Effective Reference Price (EFR) for corn would not change much for the 2025 crop year.
However, after running the numbers, there is a potential increase of about 15 cents for corn and about 37 cents for soybeans for the 2025 EFR.
Remember that the EFR is based on a rolling five-year Olympic average of the MYA prices for each crop. The current rule is based on 85% of this average, however, the Senate proposal would increase this to 88%. This provides an additional increase for the following crops in 2025:
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