This week, I participated in the House Agriculture Committee hearing entitled, “A 2022 Review of the Farm Bill: The Role of USDA Programs in Addressing Climate Change.” I raised the challenges caused by statutorily set reference prices as commodities, such as rice, experience declining prices and astronomical fuel, fertilizer, and other input costs. 
 

This exchange highlights the need to revisit current reference price policy. Commodity price protection – Price Loss Coverage or Agricultural Risk Coverage – is based on a price set in law, known as a reference price. If a commodity’s market year average price does not meet the reference price, a price protection payment is triggered. The goal of price protection programs is to protect agricultural producers from market fluctuations. However, if the reference price is not based on current market conditions, that protection may not be realized. As we draft the next Farm Bill, the House Agriculture Committee must keep producers top of mind to ensure we enact policies to enable them to continue feeding and clothing the world.