Experts skeptical of whether Biden plan will solve immediate ag problems

Published 2:15 pm Thursday, May 12, 2022

President Biden’s plan to support U.S. farmers, reduce food prices and help feed the world includes increasing the number of counties eligible for double cropping insurance and  funding to expand domestic fertilizer production.

While farm groups support the plan, announced on Wednesday, the question is whether it will deliver and, if so, when.

The double cropping being discussed involves grain crops, primarily planting soybeans after wheat is harvested. Biden’s plan is to make about 900 additional counties eligible, said Curt Covington, senior director of partners at AgAmerica, one of the largest non-bank agricultural lenders in the U.S.

“I’m a little skeptical of that,” he said.

There’s a reason farmers can’t get insurance for that in some counties. Depending on the growing season, they may or may not get a second crop, he said.

Just opening up more counties without actuarial information is hard to understand, he said.

“I think there’s a little devil in the details on that,” he said.

Farmers have to get the money to double crop, and lenders are going to have to assess the risks, he said.

As for doubling government investment to increase domestic fertilizer production from $250 million to $500 million, it would be beneficial for food security, he said, but it’s not likely to help solve the immediate problem.

“It’s not like just turning on the faucet,” he said.

Expanding capacity and building infrastructure takes time, he said.

“I’m not sure it will help with fall buying for next year’s crop,” he said.

It’s not going to affect prices this year. If anything, they’ll continue to climb,” he said.

As for food inflation, the cost of food ultimately trickles back to supply-chain issues. Those issues include transportation, labor and processing, he said.

“It’s going to take some time to get this fixed,” he said.

Biden’s plan also includes increasing technical assistance for farmers for technology-driven precision agriculture and other nutrient-management tools to reduce fertilizer use.

Zippy Duvall, president of American Farm Bureau Federation, said Biden’s plan to create more opportunities and reduce barriers for farmers is welcome but it won’t solve the many challenges facing farmers and consumers.

“Removing the disincentives for double cropping has the potential to increase near-term production in areas suitable for the practice and for farmers who have the financial capacity to do so,” he said.

Similarly, the proposal to increase domestic fertilizer production is an acknowledgement of the extraordinarily high cost of supplies for farmers and ranchers, but it could take years to realize the benefits, he said.

As for food costs, there’s no magic bullet, he said.

“It will require addressing all the factors contributing to higher costs, including record-high fuel and fertilizer prices that are bearing down on farmers,” he said.

Rob Larew, president of the National Farmers Union, said NFU appreciates the administration’s efforts to diversify domestic fertilizer markets and create more crop insurance options and flexibility.

Chuck Conner, president of National Coalition of Farm Cooperatives, said the plan will help boost domestic production, alleviate the global food shortages caused by Russia’s invasion of Ukraine and serve as a foundation to ensure U.S. food security.

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