Farm Bill Decision Deadline Fast Approaching

Enrollment in the 2018 Farm Bill programs (PLC, ARC-CO, and ARC-IC) ends on March 16th.  If you do not enroll by this date you will default to the election you made in the previous Farm Bill and receive NO PAYMENTS for the 2019 program year.  This same election holds true for 2020.

As a reminder, PLC is a price protection/income loss option that covers declines in crop prices and the ARC-CO program is an income support option based on county-level benchmark revenues and guarantees compared to actual revenues.  For those with prevent planted acres, the ARC-IC program may be worth consideration.  ARC-IC issues payments when individual crop revenue is less than the guarantee and uses individual yields, rather than the county yields.

Once an election is made, the choice carries through for 2019 and 2020.  Annual changes can be made in 2021, 2022, and 2023 program years.  If you have already made a program election and decide you want to make a change, you may do so until March 16th.

Information about the Farm Bill program options and the OSU Farm Bill Decision Tool are available at https://aede.osu.edu/research/osu-farm-management/2018-farm-bill/arcplc-decision-aid-tools.  You may also consult your local FSA office or OSU Extension Educator for answers to your specific questions.

The Secretary of Agriculture has said there will not be an extension to the enrollment deadline.  FSA offices are very busy processing enrollments and have a great deal of work to complete in less than one month.  If you have not met with your FSA office staff to enroll in the Farm Bill program, please do so ASAP.  Remember, the deadline is March 16th.

Which Program Paid More Under the 2014 Farm Bill: ARC-CO or PLC?

Source:  Gary Schnitkey, Krista Swanson, Nick Paulson, Jonathan Coppess, Univ. of Illinois; Carl Zulauf, OSU

 

The Farm Service Agency recently released 2018 payment rates for both Agricultural Risk Coverage at the County Level (ARC-CO) and Price Loss Coverage (PLC). With this release, yearly payments for 2014 to 2018 are available so that average payments from ARC-CO and PLC can be compared over the entire length of the 2014 Farm Bill. These comparisons are made in this article across counties for corn, soybeans, and wheat. For corn, ARC-CO paid more than PLC for many counties in the U.S., with notable exceptions in southern Iowa, Missouri, and central Illinois. By default, ARC-CO made higher payments for soybeans because PLC did not make payments. For wheat, most counties had higher PLC payments.

ARC-CO-Minus-PLC Payments

Under the 2014 Farm Bill, farmers and land owners had a one-time decision to choose between Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) commodity title programs for the years from 2014 to 2018. While an individual coverage option was available under ARC, most choose ARC at the County level (ARC-CO).

In this article, we determine whether ARC-CO or PLC made the largest payments across corn, soybeans, and wheat for all U.S. counties with available data. We do this by first calculating average ARC-CO payments and average PLC payments for each county for which complete data exist. These are average payments for the five years from 2014 through 2018. Then, ARC-CO-Minus-PLC payments are calculated for each county. An ARC-CO-minus-PLC payment for a county/crop combination equals the average ARC-CO payment for that county minus average PLC payment for that county. A positive ARC-CO-minus-PLC payment indicates that ARC-CO made larger payments than PLC. A negative value indicates that PLC made a higher average payment.

Several notes about the above calculation:

  • ARC-CO is a county revenue program that makes payments when county revenue is below a guarantee. Every farm in a county receives the same ARC-CO payment per base acre.
  • PLC is a price program that makes payments when the Market Year Average (MYA) price is below the reference price. Each farm in a county has a PLC yield. When the MYA price was below the reference price, the farm’s PLC yield was multiplied by the difference between the MYA price and reference price when arriving at a payment. Farms with higher PLC yields will receive higher payments. Averages presented in this article use the PLC yield equal to the average county yield from 2008 through 2012 multiplied by 90%, a yield updating option under the 2014 Farm Bill.  This procedure results in PLC yields close to the county average.
  • All values are stated on a per base acre basis (payment acres = 85% of base acres). A 6.8% sequester is deducted from all payments.

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Ohio NRCS Announces Disaster Recovery Funding to Plant Cover Crops on Flooded Cropland Acreage

NRCS just announced a new Disaster Recovery Funding program.  This funding will be administered through the EQUIP program.  Signup with Doug at the NRCS office beginning Monday.  Many of the details are not available yet.  Click on the link below for more details.

FY19 OH EQIP Disaster Recovery NR2