April 11, 2012

No marketing quota will be in effect for the 2013 wheat crop, the USDA announced.

The Food, Conservation, and Energy Act of 2008 authorises a commodity program for only the 2008 through 2012 crops of wheat. Unless new farm legislation is enacted (or the current farm bill extended), any actions taken pertaining to the 2013 wheat crop must be done in accordance with "permanent law" provisions of the Agricultural Adjustment Act of 1938, as amended (the 1938 Act), and the Agricultural Act of 1949, as amended, which are suspended through the 2012 crops. These permanent law provisions would authorise the imposition of marketing quotas, acreage allotments, marketing certificates and parity price support programs for wheat. Since the 2008 farm bill only covers through the 2012 crop, the Secretary is required by the 1938 Act to announce whether or not a marketing quota will be in effect for the 2013 wheat crop prior to April 15, 2012.

The 1938 Act would require a marketing quota for the 2013 wheat crop if the total supply of the crop would likely be excessive without the quota, and would require the Secretary to decide not later than April 15, 2012, whether a quota is needed. Based on projected supply and demand, no quota is required.