Estimated 2025 Reference Prices
Farm Bill discussions between the House and the Senate are still debating reference prices. If the 2018 Farm Bill was extended one more year, many crops already have an increase.
One of the major sticking points on the new Farm Bill is increasing reference prices for all commodities. The 2018 Farm Bill included a provision for an automatic increase in reference prices if commodity prices had increased over a five-year period. However, the maximum increase is limited to 115% of the current reference price. This is referred to as the effective reference price.
We have updated the estimate of 2025 effective reference prices for all of the crops eligible for PLC or ARC. We used either the current April 2024 estimate from USDA for MYA 2023/24 or updated this price if the May WASDE report changed the estimate. Here is the chart:
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