Agricultural and Food Policy
 Agri Outlook
Radio
Number 83
Policy/Noteworthy: The U.S. Department of Agriculture currently has no plans to offer penalty-free
early releases from Conservation Reserve Program contracts. (2:12 minutes)
Audio/Video Script:
Dr. Bobby Coats
Extension Economist
University of Arkansas, Division of Agriculture
U.S. Department of Agriculture currently has no plans to offer penalty-free
early releases from Conservation Reserve Program contracts. I’m Bobby
Coats Extension Economist University of Arkansas Division of Agriculture.
The U.S. Department of Agriculture currently has no plans to offer penalty-free
early releases from Conservation Reserve Program contracts. USDA gave the
following reasons:
This year's global wheat market remains very tight.
Corn production is expected to be record-high.
The September grain stocks report indicated higher than
expected stocks for corn and soybeans at the start of the 2007/08 crop
year.
More than 2 million CRP acres expire under existing
contracts on September 30, 2007.
Wheat, soybean, and corn markets are providing very strong
incentives to plant more acreage this fall and next spring. USDA expects
market signals will continue to provide adequate acres, recognizing that
strong competition among crops is likely.
USDA does not plan to offer a general signup while grain
stock levels remain historically low and prices continue at
unprecedented levels. Acres under continuous CRP signup, such as filter
strips and riparian buffers, are not affected by general signup
decisions. Enrollment of acres that qualify for continuous signup is
ongoing.
USDA is closely monitoring the acreage response to market
conditions and indicates future adjustments to USDA programs will be
made if needed to adjust balance in the agricultural sector."
This has been Bobby Coats Extension Economist University of Arkansas Division
of Agriculture.
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