American production of field peas and lentils has risen dramatically in response to government support under the Loan Deficiency Payment program. My colleague Kevin Hursh in Saskatoon, SA says back in 2002, the U.S. placed pulse crops under the LDP effectively guaranteeing producers a floor price. A report just released from Agriculture Canada shows the subsequent acreage and production increases.
On lentils, the seeded area in the U.S. has more than doubled since 2001 hitting 450,000 acres last year. Most of the growth has been in North Dakota and Montana. American lentil acreage could increase again this year, even though market prices are badly depressed. Saskatchewan produces far more lentils than the U.S., but it isn’t helpful to have a competitor that has returns guaranteed by a government program.
On peas, the U.S. acreage increase is even more dramatic. In 2001, the U.S. had only 227,000 acres of peas. Last year, the acreage hit 850,000 and this year could surpass 1.1 million.
According to Ag Canada, the Loan Deficiency Payment has sometimes accounted for more than a quarter of the total price received by producers for peas. Market prices for lentils and peas are very low, but when you get an extra dollar or two per bushel from the government, they’re suddenly much more attractive.
That’s how government programs in one country hurt producers in another country. Let’s say for a minute, the Canadian government would provide the same support. We don’t have to imagine very long how that would completely distort the marketplace

It’s back to the real world after a great stay in California. I got home around 10pm. Had a midterm at 9 the next morning and my first article do by Noon. Ahh the life of a busy college student. I hope everyone enjoyed the coverage on the Commodity Classic. I know I really enjoyed it and got a lot out of the whole experience. A big thank you to Tami Schilling, Mica DeLong, and everyone at Monsanto for sponsoring my trip. Also, thanks to Chuck Zimmerman for allowing me to blog on AgWired. I had a great time doing it. To everyone I met during Commodity Classic, thank you. You made my experience all the better for knowing you. I hope everyone has a safe and productive spring. Goodbye!
At the Commodity Classic last week

What a week it was last week in Anaheim. I was only there about 3 days. It feels like it was a week. It was a lot of work but a lot got done. Here’s a ZimmCast that contains an interview I conducted in the trade show at the BASF booth. You can also hear a cut from one of the new songs on the Michael Peterson, “Down on the Farm” CD.
BASF is podcasting, something I’ve mentioned previously on AgWired. Kaye Iftner, presented me with my very own Nano at Commodity Classic. You’ll have to listen to our interview to find out why and how the company is using one of the coolest Apple products ever. Kaye says that the project is a learning experience for BASF. I think that they’re just proving that they are technology leaders!
Here’s two of the hardest working ag journalists at Commodity Classic. What do you think of student bloggers Margy and Mary? Really. I’d love your feedback. These young women posted even more than I asked for. For all I know they may still have more to say. They still have a login.
interesting. The type of people at Venice Beach were not exactly the kind you would see in rural Illinois. None the less, the afternoon was great and I am so glad I was able to see the ocean. We toped that off with the Lorrie Morgan concert and headed for bed. Well, today is Sunday which means it’s time to head home. The Commodity Classic was amazing and I encourage all of you to go if you ever get a chance. Be looking for a follow up blog tonight or tomorrow. Until then, I’m off to the airport.
in Red”, and “I Didn’t Know My Own Strength.” She even brought out some new ones that will be on her upcoming new CD. My favorite of the evening is a poignant song called Mirror, Mirror. She continued the energy throughout the night and had everyone clapping and dancing in their seat. It was a great night for everyone.