Peterson Questions Farm Service Agency about Posted County Prices

(WASHINGTON, DC) - At a recent hearing of the House Agriculture Committee’s Subcommittee on General Farm Commodities and Risk Management, Congressman Collin Peterson questioned the USDA’s Farm Service Agency about Posted County Prices.

During the hearing, Peterson asked FSA to explain the actions they took in October to change one of the two terminal markets utilized to determine Posted County Prices for corn in Minnesota. That change resulted in thirteen counties in Southeastern Minnesota receiving higher Loan Deficiency Payments (LDPs) than the rest of Minnesota.

Peterson questioned whether USDA’s action made the grain transportation situation worse, since the change made the LDP in those counties more attractive and pulled more grain into an area that was already saturated with old crop corn and has a storage deficit situation, according to FSA.

Peterson also asked if the terminal change would have negative long-term consequences for area farmers, since reducing their Posted County Prices could lead to lower county loan rates in those thirteen counties when FSA updates loan rates.

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