By: Chris Bruynis, PhD, Assistant Professor & Extension Educator, OSU Extension.
Earlier I had written an article on the possibility of Ohio getting an ACRE Payment for the 2013 corn crop. The USDA corn yield for Ohio ended up at 177 bushels of grain, which was significantly higher than the 152 bushel five year Olympic average. Initially I had overestimated the state revenue guarantee, which is actually $690 per acre. Because of the higher yield and the corrected revenue guarantee at the state level, the market average price would need to fall below $3.90 for the 2013 crop. Current estimates (August 2014) have the market average price at $4.45 which is significantly higher. With this new information, it is highly unlikely that corn will make a payment for the 2013 corn crop.
By: Carl Zulauf, Ohio State University, and Gary Schnitkey, Jonathan Coppess, and Nick Paulson, University of Illinois at Urbana-Chapaign
The 2014 farm bill gives Farm Service Agency (FSA) farm owners a 1-time opportunity to elect their Title 1 crop program for the 2014 through 2018 crop years. Three program options exist: Agriculture Risk Coverage-individual (ARC-IC), Agriculture Risk Coverage-county (ARC-CO), and Price Loss Coverage (PLC) with the choice to buy the Supplemental Coverage (insurance) Option (SCO). This article examines the choice between ARC-CO and PLC. In contrast to ARC-CO and PLC, ARC-IC pays on 65% not 85% of program acres and is elected on a FSA farm basis, not a program crop basis. ARC-IC thus is an option to consider based on the ARC-IC farm situation, including when (1) production on the ARC-IC farm unit is highly variable or (2) if fruits and vegetables may be planted on the ARC-IC farm. To read more click here.