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No Early Release of CRP

USDA has decided to not allow penalty-free release of acres in the Conservation Reserve Program.

Acting Agriculture Secretary Chuck Conner announced that CRP contracts will not be released early without penalties. USDA's grain stocks report Friday may have played a role in the decision. Beginning stocks of corn and soybeans for the new crop year were higher than expected. Also more than 2 million acres of CRP contracts expire this weekend.

"Wheat, soybean and corn markets are providing very strong incentives to plant more acreage this fall and next spring. Throughout this year, the market focused on attracting corn acres and to a lesser extent wheat acres and producers reponded strongly," Conner says. "Overall, I expect that market signals will continue to provide adequate acres, recognizing that strong competition among crops is likely."

Conner does not plan to hold a general signup while grain prices are this high and stocks are so low. However; he says he'll keep a close eye on the situation and will not hesitate in the future to make adjustments.


TAGS: Soybean
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