Declines outweigh government loan deficiency payments (LDP) and counter-cyclical payments (CCP). |
If yields return to normal trend in 2006, soybean production is likely to decline. However large beginning stocks could lead to record total supplies. |
If yields return to trend line in 2006, soybean production is likely to decline. However large beginning stocks could lead to record total supplies. |
The Act cuts direct payments available to farmers before planting in 2007 from 50% to 22% of the total annual payment. This does not affect what producers will get in total, but does affect when they receive their payments. |
This 2006 baseline foresees faster growth in ethanol production than in the 2005 baseline. Higher petroleum prices and provisions of the Energy Policy Act of 2005 add to the growth. |
While modest recovery in net returns is seen for wheat, that will not likely discourage further reduction in wheat acreage. |