Agriculture is one of Ohio’s most important industries, contributing more than $100 billion to our economy and putting food on the table for thousands of Ohio workers and people around the world.
The new farm bill was signed by President Trump Yesterday. The link below will take you to the Senate Ag Committee’s title by title summary.
- Adjusted loan rates
- Annual choice between ARC and PLC
- Opportunity to update yield data
- Grassland to be removed from base acres
The four key ag committee leaders announced agreement in principle on a final farm bill Thursday. That deal includes some key changes to the Commodity Title of the bill, including adjustments sought by farm groups, according to Pro Farmer Washington Analyst Jim Wiesemeyer.
The first key change according to Wiesemeyer comes in a provision to increase loan rates while allowing for an annual election between the Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. Under the previous farm bill, growers made a single selection between the two programs for the life of the farm bill.
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Source: USDA ERS
Net farm income, a broad measure of profits, is forecast to decrease $9.1 billion (12.1 percent) from 2017 to $66.3 billion in 2018, after increasing $13.8 billion (22.5 percent) in 2017. Net cash farm income is forecast to decrease $8.5 billion (8.4 percent) to $93.4 billion. In inflation-adjusted 2018 dollars, net farm income is forecast to decline $10.8 billion (14.1 percent) from 2017 after increasing $13.0 billion (20.2 percent) in 2017. If realized, inflation-adjusted net farm income would be 3.3 percent above its level in 2016, which was its lowest level since 2002.
See a summary of the forecasts in the table U.S. farm sector financial indicators, 2011-2018F, or see all data tables on farm income and wealth statistics.
[In the text below, year-to-year changes in the major aggregate components of farm income are discussed only in nominaldollars unless the direction of the change is reversed when looking at the component in inflation-adjusted dollars.]
On August 30, 2018, the U.S. Department of Agriculture (USDA) announced its Trade Mitigation Package in response to unjustified retaliation surrounding the U.S. agricultural industry.
The Trump administration chose to employ a safeguard for America’s producers who have been negatively impacted. Thus, implementing a 3-pronged program that offers up to $12 billion to help subsidize farmers and stimulate the agricultural economy as a result of lost export sales, diminishing markets, and lower commodity prices.
The short-term package is broken down into three parts, including the Market Facilitation Program (MFP), the Food Purchase and Distribution Program, and the Agricultural Trade Promotion Program.
The following information is from Ben Brown & Haylee Zwick:
- Acreage reports for crop commodities must be on file at local FSA office for payment eligibility
- Crops grown for seed are currently not eligible
- Dairy producers not currently enrolled in MPP are still eligible for payments and will follow MPP rules for new dairy operations and complete CCC-781 to establish production history
- Producers who farm in multiple counties should apply in only their control county
- Examples of production evidence include receipts of sale, income ledgers, custom harvesting invoices, truck scale tickets, and breeding, inventory, or vet records
- Payment Calculation Example (Soybeans) (10,000 bu. x 50%) x $1.65 = $8,250