A new farm bill will hopefully be a boon for those “actively engaged in farming” and have enough time to see the fruition of their labor translated into the market and exchange traded funds (ETFs).
As we ease into 2009, the farm bill previously enacted in 2008 will start to be implemented, reports to Teri Moss for The Imperial Republican.
The current farm bill is known as the Food, Conservation and Energy Act of 2008 and replaces the last farm bill, which expired in September 2007. The bill is a $288 billion, five-year agricultural policy. In short, what it does is:
- speed up the commercialization of advanced biofuels,
- encourage the production of biomass crops (those crops used as fuel or energy sources),
- and expand the current Renewable Energy and Energy Efficiency Program.
As portions of this bill are implemented throughout 2009, it could create renewed demand for some areas of the agriculture sector and boost related ETFs.
Through all the new technical bureaucratic policies in place, Joe Farmer may hopefully be better protected which in turn could be reflected in PowerShares DB Agriculture (DBA), which was down 21% for 2008.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.