Producer optimism shot up in January on the backs of expected business with China after the two countries signed a “phase one” trade deal.

China’s commitments to dramatically increase its purchases of U.S. commodities have raised new questions for farmers as they face decisions about which farm bill program to enroll in and pencil out their finances and risk management for the year.

Government payments to farmers are forecast to hit their highest level in more than a decade because of the trade assistance being provided to producers this year, and the total could go even higher if Congress, as expected, authorizes a new round of disaster aid.

A bipartisan farm bill that would protect crop insurance and commodity programs as well as nutrition assistance from cuts passed the Senate by an overwhelming margin, 86-11, clearing the way for negotiations to begin next month with the House. 

Leaders of the Senate Agriculture Committee this week will seek to get a strong bipartisan vote for their farm bill draft from the panel, giving the measure momentum as it heads to the Senate floor in the following days.

Leaders of the Senate Agriculture Committee have reached agreement on a bipartisan farm bill that would keep the 2014 farm law largely intact while avoiding a partisan fight over food stamps.

Senate Agriculture Chairman Pat Roberts forcefully rejected proposed farm bill reforms that would make the Agriculture Risk Coverage program more attractive and increase payments to farmers in the upper Midwest at the expense of producers in other regions.