Opening Statement for Senator Richard Lugar Farm Price Volatility Hearing Good morning.
Today s hearing focuses on farm price volatility, the propensity for change in commodity prices.
We all know that agricultural markets are volatile by nature with the possibility of large price movements in both directions. Farmers have been particularly concerned about volatility in recent months because the price trend for many commodities has been down. Farm prices for grains and milk have dropped sharply this year. Recent declines have been from last year s high prices. Some say the new farm bill has increased the potential for price volatility.