Farm Bill Shadow Loss Program: Who Gains and Who Loses?

Jun 21, 2012

How the U.S shadow loss program could impact Canadian canola production

The 2012 Farm Bill is a contentious topic in US agriculture and there is a lot to gain and a lot to lose. For US crop farmers there is something to gain if the new shadow-loss program gets passed. Under the current system, producers can buy insurance that would cover them in the event that they might experience poor yields or a decline in price. But like most insurance policies it doesn’t protect you from all revenue loss. The shadow-loss program gives farmers a lump sum of monies upfront in the event that their crop prices drop to a point that otherwise wouldn’t be covered under crop insurance.

For larger crops such as corn the incentives of the program wouldn’t have much of an impact. But it has the potential to alter the incentives for small-acreage crops such as canola and mustard seed. These crops would have the advantage if the shadow loss program was introduced. The new formula would guarantee producers large returns in the market. The appeal is that these crops tend to be more volatile to whims of the market, and with the new proposed changes it would make them more secure.

Currently, canola is primarily used as a rotational crop in the US, but the shadow loss program might be the catalyst for producers to grow more small acreage crops like canola to capitalize and benefit through the program formula for crop acreage breakdowns. But for farmers across the border there is a potential for a loss. This could have drastic ramifications for Canada’s canola production. Canada is the number one single producer of canola, and the world’s only “Made in Canada” crop, and it is often the nation’s most valuable one contributing more than $13 billion annually to the economy. The introduction of the shadow loss program could shift the competition playing field for farmers across the border that might not be able to compete with the subsidies given to US farmers.

Video: Winter Service Inspections for John Deere Equipment - The FarmCast Ep64

The FarmCast, host Troy Randall speaks with Doug Luedke, Vice President of Service, and Davin Peterson, Executive Vice President of Aftermarket at 21st Century Equipment, to discuss the importance of proactive service and how it helps farmers reduce downtime during their busiest seasons. The conversation focuses on the Winter Service Inspection Program, a comprehensive approach designed to keep equipment running at peak performance and limit costly in-season breakdowns through preventative maintenance and expert technician support.

Doug and Devin explain how 21st Century Equipment’s service teams have evolved to meet the needs of today’s connected machines. With more technology and data integrated into modern equipment, technicians now play a vital role in both mechanical repairs and precision ag support. Through advanced diagnostics, machine monitoring, and John Deere’s Expert Alerts, they can identify and address potential issues before they become major problems—saving customers valuable time, money, and frustration.

Throughout the discussion, the team shares real-world success stories demonstrating how proactive inspections and customer-focused service help maximize uptime and efficiency for every operation. Whether it’s a large tractor, combine, or small mower, the goal remains the same: to provide trusted, reliable support that helps farmers and landowners stay productive and confident in their equipment year-round.