Unusual circumstances

There is no magic wand that governments can wave to fix all the problems created by the abnormal weather this spring. The AgriRecovery program isn’t much better than all the ad hoc programs governments have invented over the years, because AgriRecovery seems to have no set parameters. However, there are some special problems that have been created this spring where governments could perhaps step in and play a role. One of those special problems involves the spring cash advance.  A producer emailed me pointing out that if you took a spring cash advance and you weren’t able to seed the acres outlined or if the crop doesn’t establish on those acres, the outstanding advance comes due 30 days after the submission of the seeded acreage report. Under more normal circumstances, that would seem reasonable, but this year a large amount of money has been spent on inputs that you may be stuck with. Inoculants have no value after their season of use and fuel can’t be returned. Fertilizer can also be a problem to return, especially blended fertilizer. Producers have been returning seed when possible, but it’s sometimes subject to significant restocking charges. It’s hard to know how many producers are in a crunch with a spring cash advance on unseeded acres, but it would seem reasonable to provide some latitude to producers caught in this situation. I’m Kevin Hursh.

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