On Tuesday, the Food and Agriculture Policy Research Institute published a report called, "Impacts of Changes in Direct Payment Rates, Target Prices and Loan Rates." The report looks at proposed policy that would keep the structure of farm programs but adjust direct payment rates, target prices and loan rates.
"Proposals for the 2007 farm bill commodity title range from modest changes to current farm programs to policies that would represent a more radical departure from the status quo," the report says. "The point of comparison for the analysis is the stochastic baseline for US commodity markets prepared by the Food and Agricultural Policy Research Institute at the University of Missouri—Columbia in early 2007.
The report assumes a continuation of 2002 Farm Bill provisions - an approach which a House ag subcommittee recently unanimously approved - and the continuation of current biofuel industry supports.
"Seven scenarios are compared to the FAPRI baseline. The first six change direct payment rates, target prices, and/or loan rates for a single commodity, holding all other program provisions at baseline levels. The seventh scenario, based on a proposal by the American Soybean Association, changes target prices and loan rates for a number of commodities simultaneously," the report says.
The report is available at www.fapri.missouri.edu/outreach/publications/2007/FAPRI_MU_Report_21_07.pdf.