Farm business

2024 ARC-CO Corn & Soybean Payment Estimates, Ohio Counties, November 2025

Authors: Carl Zulauf, Seungki Lee, and David Marrison, Ohio State University

Click here for a PDF version of this article

2024 crop year payments for corn and soybeans are estimated for ARC-CO (Agriculture Risk Coverage – County version) using USDA, FSA (US Department of Agriculture, Farm Service Agency) final program parameters, US crop year price, and Ohio county yield.

Caveat:  Even though final 2024 program data is used, the county payments in this report are estimates.  Currently available data do not break out base acres enrolled in ARC-CO by irrigation –dryland designation while program parameters for some Ohio counties are broken out by this designation.  We use dryland values since irrigation is limited in Ohio.  Our estimates should be close to the actual values.

ARC-CO Ohio Payment Overview

  • Appended Ohio maps present corn and soybean per base acre payment rate and total payment by county.  Tables presents the combined corn and soybean payments by county.
  • $85 million total Ohio corn payments
  • $83 million total Ohio soybean payments
  • $168 million combined payments
  • $111 per base acre – highest per base acre payment for corn (Ross County irrigated)
  • $71 per base acre – highest per base acre payment for soybeans (Mercer County)
  • $9 million – highest total county payment for corn (Pickaway)
  • $5 million – highest total county payment for soybeans (Mercer)
  • $13 million – highest total county payment for corn plus soybeans (Pickaway)
  • 34 Ohio counties with corn base had no ARC-CO payments.
  • 20 Ohio counties with soybean base had no ARC-CO payments.
  • 19 Ohio counties with corn and/or soybean base had no ARC-CO payments.

PLC (Price Loss Coverage), the other widely-used commodity program option, made no payments to corn and soybeans.

 

Payment Formulas (● = times):

ARC-CO payment rate per base acre = MAX [$0, or 86% times (county benchmark revenue – observed revenue)] ● 85% payment factor.  County benchmark revenue = (5-year Olympic average (high and low value removed) of recent US crop year prices ● 5-year Olympic average of recent trend-adjusted county yields).  Observed revenue = observed US crop year price ● observed county yield.  ARC-CO payment rate is capped at 10% of county benchmark revenue.

PLC payment rate per base acre = MAX [$0, or (US effective reference price – US crop year price) ● FSA farm’s PLC base yield ● 85% payment factor. Continue reading 2024 ARC-CO Corn & Soybean Payment Estimates, Ohio Counties, November 2025 →

Pasture and Forage Risk Protection? – Enroll by December 1st

By: Eric Richer, Aaron Wilson, Mike Estadt, Garth Ruff

It is no secret that hay producers and pasture managers in Ohio have experienced lower production in the past two years than the previous several years due to significant drought in parts of the state. Similar to row crop production, weather risk can present significant challenges for our livestock producers who produce their own forages and/or graze livestock. Those producers may consider Pasture, Rangeland, and Forage (PRF) Insurance as part of their risk management strategy. Enrollment in this insurance product closes December 1st each year.

The Basics

PRF is a single-peril (rainfall only) and area-based insurance product. Area-based means that indemnity payments will not be based upon individual producer’s experience, rather, payments will be based upon a grid’s deviation from historically normal rainfall. It covers less than average rainfall levels in a particular grid up to the level of coverage that a farmer selects. Rainfall is measured through the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC). A producer will have to make several choices including the coverage level of forage production they wish to insure, the rainfall index months to cover, the productivity level of the field or fields they wish to enroll and the number of acres they wish to insure. Continue reading Pasture and Forage Risk Protection? – Enroll by December 1st →

Lorain County Planning for the Future of your Farm Workshop, December 11 & 17

 This program will be held on December 11 and 17 from 6-9 PM with a light meal starting at 5:30 pm.

If you and your family are grappling with the critical issue of how to transition your farm operation and assets to the next generation, OSU Extension invites you to attend the “Planning for the Future of Your Farm Workshop” on _December 11 & 17_from 6:00 – 9:00 p.m. at _the Lorain County Extension Office with a light meal starting at 5:30.

This two-evening workshop will help your family to actively plan for the future of the farm business.  Learn how to have crucial conversations about the future of your farm and gain a better understanding of the strategies and tools that can help you transfer your farm’s ownership, management, and assets to the next generation. We encourage parents, children, and grandchildren to attend together to develop a plan for the future of the family and farm.

Teaching faculty for the workshop are David Marrison, OSU Extension Farm Management Field Specialist, and Robert Moore, Attorney with the OSU Agricultural & Resource Law Program.

Workshop topics include: Developing Legacy Goals; Planning for the Transition of Management; Planning for the Unexpected; Communication and Conflict Management; Legal Tools and Strategies; Developing Your Team; Getting Your Affairs in Order; and Selecting an Attorney.

The base registration fee of $35_includes course materials, refreshments and light meal prior to evening’s workshop.  Registration is limited and should be received no later than December 9.

To get registered, please reach out to the Extension office or stop by to fill out a registration form. There are limited spots available, so don’t wait! We hope to see you there! You can also find the flyer and registration form on our county page here: https://lorain.osu.edu/events/planning-future-your-farm-workshop

Farmer and Farmland Owner Income Tax Webinar

Written by Jeffrey K. Lewis, Esq., Legal Associate, Agricultural and Resource Law Program, Income Tax Schools

Barry Ward & Jeff Lewis, Income Tax Schools at The Ohio State University

Are you a farmer or farmland owner wanting to learn more about recent tax law changes which were a part of the One Big Beautiful Bill Act? If so, join us for a live webinar on Friday, November 14, 2025, from 10:00 a.m. to noon, as part of our Farm Office Live Series.

To register visit: https://go.osu.edu/register4fol

This webinar will focus on issues related to farmer and farmland owner income tax returns as well as the latest news on CAUV and property taxes in Ohio. This two-hour program will be presented in a live webinar format via Zoom by OSU Extension Educators Barry Ward, David Marrison, Jeff Lewis, and Robert Moore. Anyone who operates a farm, owns farmland, or rents agricultural property will benefit from this timely update.

Topics to be discussed include:

  • Tax Provisions of the One Big Beautiful Bill Act:
    • Changes to Section 179 Expensing and Bonus Depreciation
    • Changes to 1099 Thresholds
    • Changes to Estate Tax Exemption
    • And many more….
  • Tax Planning in Low Income Years
  • Residual Fertility / Excess Fertility Deduction
  • Research & Development Tax Credit
  • Sale of Inherited Farm Assets
  • Valuation of Unharvested Crops
  • Special Use Valuation
  • Income Tax Issues for 4-H & FFA Projects
  • Ohio Tax Update (CAUV/Property Tax Update, Income Tax Changes)

Registration: https://go.osu.edu/register4fol

For more information, contact Barry Ward at ward.8@osu.edu or Jeff Lewis at lewis.1459@osu.edu

Webinar for New Owners of Farmland

Written by Peggy Kirk Hall, Attorney and Director, Agricultural & Resource Law Program

Are you a new owner of farmland? Whether inheriting or purchasing farmland for the first time, a new farmland owner must choose what to do with the land. Farm it, sell it, lease it, preserve it — all are viable options that require an understanding of economic considerations and legal requirements.

Our upcoming webinar for the National Agricultural Law Center can help. Join me and Robert Moore on October 15, 2025 at Noon EST as we present “So Now You Own a Farm: A Beginner’s Guide to Farmland Ownership.” 

Based on our recently published Beginner’s Guide to Farmland Ownership, this webinar will provide practical insights and strategies on new farmland ownership.  We’ll cover topics such as:

  • Estimating the value of farmland;
  • How to sell, lease, manage, or preserve the land;
  • Protecting the farmland from risk.

The session can help both new farmland owners and the professionals who advise them better navigate the responsibilities, options, and decision-making that comes with farmland ownership.  Register for the free online webinar at https://nationalaglawcenter.org/webinars/beginners-farmland-ownership/. 

Annual Cost of Storing Ohio Corn and Soybeans Since 1973

By: Carl Zulauf, Professor Emeritus, Ohio State University; and Eric Richer, Associate Professor and Field Specialist , Ohio State University Extension

The cost of storing the average Ohio corn and soybean bushel since 1973 is examined.  Storage cost is measured three ways:  per bushel, relative to harvest price, and per acre of production.  All three measures are at or near post 1973 highs as total costs to store corn and soybeans have roughly doubled since 2020 and now exceed $1 per bushel for both corn and soybeans over a 12 month storage period.  This notable increase occurred after a long period (1974-2019) during which declining interest rates and thus interest opportunity storage cost per bushel largely offset increasing physical storage cost per bushel.  These storylines underscored the important role of interest rates and thus interest opportunity cost in offsetting or reinforcing on-going increases in physical storage cost.  The reinforcing role has been especially noticeable since 2020.

Procedures:

Starting this study with the 1974 marketing year postdates the increase in price variability that occurred in the early 1970s (Kenyon, Jones, and McGuirk).  The study ends with the last complete marketing year, 2024.  Cash price is the average monthly price paid to Ohio farmers by first handlers as reported by USDA (US Department of Agriculture), National Agricultural Statistics Service.  Storage starts in October, the month with the lowest average cash price.  Storage cost includes (a) physical storage cost at commercial facilities to keep the crop in useable condition and (b) interest opportunity cost of storing instead of selling at harvest.  Annual physical storage cost is from USDA, Commodity Credit Corporation through the 2005 marketing year.  Thereafter, it is for an Ohio country elevator, cross checked with another first delivery point.  Interest opportunity storage cost is calculated by multiplying (a) the October Ohio cash price times (b) the average one year US Treasury bill rate quoted on an investment basis for October as reported by the Federal Reserve Bank of St. Louis.

Physical storage cost for corn and soybeans can vary, even within a state, across different local markets in any year due, in part, to different local supply and demand conditions for storage.  Moreover, the structure of commercial storage cost for corn and soybeans often varies from year to year.  Common structures are (a) monthly or daily charge per bushel, (b) monthly or daily charge per bushel plus an upfront charge, and (c) an initial charge for a period, for example 3 months, then a monthly or daily charge per bushel.  To create a standard format across years, physical storage cost were converted into a cost for the year (i.e., 12 months of storage). Continue reading Annual Cost of Storing Ohio Corn and Soybeans Since 1973 →

Planning for the Future of Your Farm Online Farm Transition and Estate Course Now Available

OSU Extension is pleased to announce that a new online self-paced course titled “Planning for the Future of Your Farm” is now available through OSU’s Professional and Continuing Education platform. This course is designed to help farm families navigate the complex process of farm transition and estate planning.

Using OSU Extension’s structured five-phase approach, participants explore strategies for transferring ownership, management, and assets to the next generation. The course emphasizes effective family communication, legal and financial planning tools, and proactive decision-making.

Whether your farm is large or small, this course provides the guidance that will help you to create a customized transition plan that reflects your family’s goals and values. Families are encouraged to participate together to develop a shared vision for the future. Continue reading Planning for the Future of Your Farm Online Farm Transition and Estate Course Now Available →

Time to Review Your Health Care Power of Attorney and Living Will

Written by Robert Moore

Planning for the future of a farm involves much more than deciding who will operate the business or inherit the land. It also means making decisions about your personal care if you cannot speak for yourself. Few topics are harder to consider than end-of-life treatment, but addressing them in advance can save loved ones from confusion and  conflict at a difficult time. Two legal documents are especially important for these decisions: the Health Care Power of Attorney and the Living Will Declaration. Continue reading Time to Review Your Health Care Power of Attorney and Living Will →

2026 Crop Insurance Decision – a cut and paste from last year or not?

By Clint Schroeder, Program Manager for Ohio Farm Business Analysis Program and Eric Richer, Field Specialist, Farm Management

With the projected price discovery period now closed for winter wheat Ohio farmers have until September 30, 2025, to select the crop insurance coverage that best suits their operation. However, the decision on policy type and coverage levels for 2026 crops could be impacted by the passage of the One Big Beautiful Bill Act (OBBBA). Signed into law on July 4, 2025, OBBBA offers higher area-based policy coverage levels, increases premium support, and expands support for beginning farmers and ranchers. This article will highlight these key changes so that producers can make more informed decisions for 2026 production on their farm. Continue reading 2026 Crop Insurance Decision – a cut and paste from last year or not? →

A Recent Change to FSA Program Payments is Good for Farmers

By:Robert Moore

The One Big Beautiful Bill (HB 1) has received both praise and criticism from many commentators. However, one change that is clearly positive for farms is the provision allowing LLCs, corporations, and other liability-limiting entities to be eligible for multiple payments. This eliminates the need for some farms to choose between multiple FSA payments and unnecessary liability exposure.

Under the old rules, which remained in place through previous Farm Bills, LLCs and corporations were treated as a single “person” for FSA payment limitation purposes. This meant they were capped at one annual payment limit, historically $125,000 for programs such as Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC), regardless of the number of owners or shareholders involved. To access multiple payment limitations, many farms had to operate as general partnerships, which increased exposure to personal liability.

In contrast, the new rules introduced by HB 1 treat LLCs and S corporations as pass-through entities, similar to partnerships. This allows each actively engaged member or shareholder to qualify for a separate payment limit, now inflation-adjusted to a base of $155,000 per person or entity. Continue reading A Recent Change to FSA Program Payments is Good for Farmers →