With Russia and Ukraine serving as major food exporters and continued uncertainty with the global food supply, the Biden administration proposes increasing commodity loan rates for two years. An announcement this past Thursday outlined the proposed plan to help reduce global shortages and provide aid to Ukraine, which includes:

>> Increasing wheat loan rates to 63%, oilseeds 40%; rice and pulse 21%
>> Extending loan terms to 12 months for 2022
>> Providing a $10/acre incentive through crop insurance premiums on soybean crops planted after the winter wheat crop in 2023

In addition to aiding the food supply to Ukraine, this proposal would benefit U.S. farmers by opening access to low-cost credit options in 2022 and, in 2023, providing greater price certainty due to the higher loan rate. The proposal will now be sent to Congress for approval.

Read more on the two-year proposal.