Dianne Shoemaker, Extension Farm Management Specialist, Ohio State University Extension
2020 has not turned out as anyone expected, and the dairy industry received no exceptions. Good milk prices quickly reversed course, and what seemed to be improving prices did not materialize in on-farm milk checks. The Coronavirus Food Assistance Program (CFAP) was developed to provide farms that have been buffeted by these unforeseen, uncontrollable, and on-going circumstances some cash flow assistance.
The intent of this program is to directly assist farms impacted by the effects of the COVID-19 outbreak. Sign-up began at your local Farm Service Agency (FSA) office on Tuesday, May 26 and continues through August 28, 2020. FSA offices currently work with clients via email, fax, and phone by appointment. Continue reading
By: Barry Ward, Director, OSU income Tax Schools
Significant tax related changes as a result of the new legislation passed in response COVID-19 have created some questions and perhaps consternation over the past few months as taxpayers and tax professionals wrestle with how these many changes may affect tax returns this year and beyond. OSU Income Tax Schools is offering a Summer Update to address these issues and other important information for tax professionals and taxpayers.
The OSU Income Tax Schools Summer Update: Federal Income Tax & Financial Update Webinar is scheduled for August 13th and will be presented as a webinar using the Zoom platform.
John Lawrence, CPA, will teach the course that offers continuing education credits for tax professionals and attorneys. Mr. Lawrence has taught at OSU Extension tax schools for over 20 years and developed this curriculum. He retired from the IRS in 2006 and has since run his own firm in Lawrence, Indiana and Wooster, Ohio. Continue reading
By: Todd Hubbs, Department of Agricultural and Consumer Economics, University of Illinois. farmdoc daily (10):133
Stronger export numbers and lower acreage boosted corn prices since the end of June. Concerns about demand weakness in ethanol production emerged recently. A recovery in economic activity helped ethanol plants ramp up production as gasoline demand increased. A resurgence in virus incidences threatens ethanol production over the short run and injects uncertainty into long-run prospects.
Gasoline demand recovered to almost 89 percent of pre-coronavirus lockdown levels in early July. Despite this positive development, the recovery in demand flattened out over the last few weeks. Gasoline stocks began to recede but still sit substantially above levels seen at this time of the year. Attempts to reopen the economy hit a snag as the virus spread rapidly around the country after initial hopes saw a rapid opening in many areas. At 8.648 million barrels per day, demand recovered substantially from the low point of 5.311 million barrels per day seen in early April. The path back to normal gasoline demand levels appears stalled. Ethanol production followed this recovery and will feel the implications of flattening gasoline use. Continue reading
USDA’s Risk Management Agency (RMA) announced changes to the Livestock Gross Margin (LGM) insurance program for cattle and swine beginning in the 2021 crop year. Changes include adding premium subsidies to assist producers and moving premium due dates to the end of the endorsement period for cattle.
“These changes build upon RMA’s continued effort to make livestock policies more affordable and accessible for livestock producers,” RMA Administrator Martin Barbre said. “We are working to ensure that these improvements can be implemented by the July 31 sales period so producers can take advantage of these changes as soon as possible.”
Prior to this change, LGM-Cattle and Swine did not have premium subsidies. Now, subsidies have been added and are based on the deductible selected by the producer. For LGM-Cattle, the subsidy will range from 18 percent with 0 deductible up to 50 percent with a deductible of $70 or greater. For LGM-Swine, the subsidy will range from 18 percent with 0 deductible up to 50 percent with a deductible of $12 or greater. Continue reading
OSU Extension is pleased to be offering the a “Farm Office Live” session on Thursday morning, June 11 from 9:00 to 10:30 a.m. Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues impact our farm economy.
The session will begin with the Farm Office Team answering questions asked over the two weeks. Topics to be highlighted include:
- Updates on the CARES Act Payroll Protection Program
- Prevent Plant Update
- Business & Industry CARES Act Program
- EIDL Update
- CFAP- update on beef classifications and commodity contract eligibility
- Dicamba Court Decision Update
- Other legal and economic issues
Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day. Participants can pre-register or join in on Thursday morning at https://go.osu.edu/farmofficelive
From Across the Field
Coronavirus Assistance Program Details Released
I hope everyone had a great holiday weekend and was able to celebrate the unofficial start of summer in some capacity. Last week’s steady rain continued to slow farming operations. As I drive a around the county it is evident that there were some small grains that had fungicide applied for head scab prevention. This week’s wheat scab forecast puts the crop at high risk across much of Ohio.
As we all know COVID-19 has hit the agricultural industry hard. Market prices for major commodities have fallen sharply since COVID-19 reached the United States back in early January. The following is a summary of the Coronavirus Food Assistance Program from David Marrison, Extension Educator in Coshocton County.
Milk and cattle prices have declined over 25 percent and corn and hog prices are down 19%. At one time during the pandemic, these prices had dropped over 40 percent. Currently corn prices are down 22% and soybeans are down 15%. Early projections suggest total net farm income could be down 20% or more over in 2020. Continue reading
We’ve Been Here Before
After last week’s column showed some hope and optimism for the planting being wrapped up in a timely manner, I think this is a good week to start with a quote from Yogi Berra: “It’s like déjà vu all over again.” It feels like 2019 in some regards after a week of rain that now has brought field progress to a halt. The excess rainfall looks to make for another busy June for field activities, the second of which in two years.
This coming Memorial Day weekend is a great opportunity to spend time with family, especially if it is not fit to farm or garden. I will be heading south for the weekend to do just that. Memorial Day is also our annual reminder to vaccinate and trim hooves within our family’s sheep flock. We had a good spring with every ewe lambing, and most lambs have been weaned and started on feed. Before too long, it will be time to turn the rams back in with the ewes and start the process all over. Continue reading
By: Ben Brown, Peggy Kirk Hall, David Marrison, Dianne Shoemaker and Barry Ward, The Ohio State University
Since the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020 and the announcement of the Coronavirus Food Assistance Program (CFAP) on April 17, 2020, producers in Ohio and across the country have been anxiously awaiting additional details on how the Coronavirus Food Assistance Program (CFAP) will provide financial assistance for losses experienced as a result of lost demand, short-term oversupply and shipping pattern disruptions caused by COVID-19.
The additional details on CFAP eligibility, payment limitations, payment rates, and enrollment timeline arrived on May 19, 2020, when the USDA issued its Final Rule for CFAP. In this article, we explain the Final Rule in this issue of News from the Farm Office.
Click here to read the complete article
By Peggy Kirk Hall, director of agricultural law, Ohio State University Agricultural and Resource Law Program
There’s much disagreement over what we know about COVID-19, but one thing we can agree upon is that it has left an impact on the food supply chain. For some food producers, that impact is creating opportunity. Many growers see the potential of filling the gaps created by closed processing facilities, thin grocery shelves, and unwillingness to shop inside stores. If you’re one of those growers who sees an opportunity to sell food, we have a few thoughts on legal issues to consider before moving into the direct food sales arena. Doing so will reduce your risks and the potential of legal liability. Continue reading
U.S. Secretary of Agriculture Sonny Perdue today announced details of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition to this direct support to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distributors, whose workforces have been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need. Continue reading