Farm Doc Provides Look at PLC and ARC-CO Decision for 2024

Don’t miss the deadline of March 15, 2024.

OSU Extension appreciates permission to cross-post this article written by Farm Doc and published on January 16, 2024.

First Look at PLC and ARC-CO for 2024

by: Nick PaulsonGary Schnitkey, and Ryan Batts Department of Agricultural and Consumer Economics, University of Illinois, and Dr. Carl Zulauf, Department of Agricultural, Environmental and Development Economics, Ohio State University

Because the 2018 Farm Bill was extended, farmers will have the same commodity title choices in 2024 as they have since 2019.  These include the Price Loss Coverage (PLC), Agricultural Risk Coverage at the county level (ARC-CO), and ARC at the individual level (ARC-IC) programs. For the first time, the effective reference prices in 2024 for corn ($4.01) and soybeans ($9.26) will be above statutory reference prices ($3.70 for corn, and $8.40 for soybeans). Wheat’s effective reference price will remain at the statutory level of $5.50.  Those effective reference prices are well below 2024 ARC benchmark prices: $4.85 for corn, $11.12 for soybeans, and 1 for wheat.  As illustrated in the recently updated 2024 Farm Bill What-If Tool — a Microsoft Excel spreadsheet — ARC-CO will trigger larger payments when county revenues are driven by low yields, while PLC payments may be larger with moderately low prices and higher yields, as well as in scenarios with extremely low prices.

Payments from either PLC, and ARC-CO remain relatively unlikely for corn, soybeans, and wheat, even with lower prices expected for 2024.  There is a higher likelihood of ARC-CO triggering payments on corn and soybean base acres given the higher benchmark prices compared with PLC’s effective reference prices. However, PLC may be attractive if an individual is concerned about corn and soybean prices falling below $3.75 and $9.00 per bushel, respectively.  In addition, producers interested in using the Supplemental Coverage Option (SCO) insurance program will want to enroll in PLC.

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Ohio State Farm Succession Survey

Do you operate a farm in Ohio? If yes, your participation in a survey about the future of agriculture and farm succession plans across the state would be greatly appreciated. OSU Extension is pleased to be assisting Ryanna Tietje (OSU Senior studying agribusiness at The Ohio State University) with a honors research project. Ryanna is conducting a survey of Ohio’s farmers to gain a better understanding of farm succession in Ohio. If you are the primary operator of an Ohio farming operation, we would greatly appreciate if you would take approximately 15 minutes to complete the survey, which consists of about 45 questions.

The survey can be accessed at: www.go.osu.edu/FarmSuccessionSurvey/

Please be assured that the survey does not ask for any personally identifying information. In addition, all responses will remain anonymous and cannot be linked back to your specific operation. This research is being guided by Dr. Margaret Jodlowski and David Marrison. Thank you in advance for your time and effort completing this survey that will help with the advancement of Ohio agriculture!

AEDE Economic Outlook and Policy Webinar Series 2024

The Department of Agricultural, Environmental, and Development Economics (AEDE) is hosting our annual Spring Monthly Webinar Series.

What are the key international issues with grain marketing in 2024? Do renewable energy needs ask too much of rural Americans? Uncertainty and rising prices have become fixtures in our financial and economic decision-making of late. This uncertainty and unrest have far-reaching impacts on not just our wallets but also on the very environment we live in. Join our expert economists for a new webinar series as we explore what’s going on in key commodity and labor markets. This series features a different AEDE economist breaking down an interesting topic every month throughout spring.

The Spring 2024 series schedule is below. Please register for each event you would like to attend separately by clicking the appropriate link on the AEDE website. Once registered, participants will receive a confirmation email with a link to view the selected webinar(s) live at the scheduled time(s). Participants will receive an automated reminder email for all upcoming sessions they registered to attend. Those unable to join live should still register to receive a recording of the webinar. All webinars will also be posted on the AEDE YouTube channel’s playlist for the series shortly after they are given live.  Click here to register.

  • January 24 – Dr. Jared Grant: “An Influencer’s Impact: How Trust May Shape Food Demand”
  • February 21 – Dr. Seungki Lee and Dr. Ian Sheldon: “Grain Marketing in 2024: What are the Key International Issues?”
  • March 20 — Dr. Yao Wang: “Place-Based Economic Development: The Case of Intel”
  • April 17 — Dr. Mark Partridge: “Do Renewable Energy Needs Ask Too Much of Rural Americans? A View from Ohio.”
  • May 15 — Dr. Ale Hollingsworth: “Excess Emissions: Environmental Impacts, Health Effects, and Policy Debate.”
  • June 5 — Dr. Margaret Jodlowski: “Agricultural Labor Supply and Citizenship Status”

Farm Science Review is just around the corner!

LONDON, Ohio – More than 50 companies will join the ranks as exhibitors for the 61st Farm Science Review Sept. 19-21 at the Molly Caren Agricultural Center. The new exhibitors represent various sectors in the agriculture industry including livestock handling, equipment advancements, agronomic technology, agricultural policy, and more.

Paulding County Extension Office has tickets for sale at a discounted price total of $10 per ticket. Tickets will be for sale until Monday, September 18 at noon. Continue reading

Bio and Renewable Diesel Energy What the Future Holds Webinar

The OSU Extension Energy Outreach team will put on a program on renewable diesel energy on Sep 26, in lieu of our monthly meeting.  Please see the attached flyer for the link.

Join speakers from Ohio State University Extension, Clean Fuels Alliance America, Benchmark Biodiesel, and the Ohio Soybean Council to learn more about current trends in the soybean biodiesel market. Questions- Email: Dan Lima: lima.19@osu.edu or Gwynn Stewart: stewart.1818@osu.edu

DATE: Sept. 26, 2023

TIME:10:00 a.m.- 11:30 a.m.

To register: https://go.osu.edu/biodiesel

The virtual panel will include:

  1. Kirk Merritt from the Ohio Soybean Council
  2. Tom Verry from Clean Fuels Alliance America (formerly the National Biodiesel Association)
  3. Seungki Lee from OSU College of Food Agriculture and Environmental Science (Ag Economist)
  4. Page Tohorson from Benchmark Biodiesel- Private sector

The goal is to introduce the Bio/Renewable diesel market to the public/farmer.  We hope to highlight the market potential of this fuel for not only the public but the soybean producer as well.

Sincerely,

The OSU Extension Energy Outreach Team

Western Ohio Cropland Values and Cash Rents Survey Summary 2022-23

The Western Ohio Cropland Values and Cash Rents Survey Summary 2022-23 has been published to the Farm Office page:

https://farmoffice.osu.edu/farm-management-tools/farm-management-publications/cash-rents

A blog post is also available highlighting the key findings:

https://farmoffice.osu.edu/blog/tue-08292023-1159am/western-ohio-cropland-values-and-cash-rents-2022-23

The Importance of Responding to NASS Surveys

USDA’s National Agricultural Statistics Service (NASS) conducts hundreds of surveys every year and prepares reports covering virtually every aspect of U.S. agriculture.

If you receive a survey questionnaire, please respond quickly and online if possible.

The results of the surveys help determine the structure of USDA farm programs, such as soil rental rates for the Conservation Reserve Program and prices and yields used for the Agriculture Risk Coverage and Price Loss Coverage programs. This county-level data is critical for USDA farm payment determinations. Survey responses also help associations, businesses, and policymakers advocate for their industry and help educate others on the importance of agriculture.

NASS safeguards the privacy of all respondents and publishes only aggregate data, ensuring that no individual operation or producer can be identified.

NASS data is available online at nass.usda.gov/Publications and through the searchable Quick Stats database. Watch a video on how NASS data is used at youtube.com/watch?v=m-4zjnh26io&feature=youtu.be.

Coffee & Grain Webinar Recap- Tight Supply Drives High Commodity Prices

On Monday morning’s Coffee and Grain Zoom, Dr. Seungki Lee (Assistant Professor in the Department of Agricultural, Environmental, and Development Economics) discussed the grain market outlook and the new crop prospects based on the USDA February World Agricultural Supply and Demand Estimates (WASDE) report. In all three major crops – corn, soybean, and wheat, strong prices are projected in the 2022/2023 market mainly due to the tight supply. Additionally, Brazil was singled out as its production can swing both the 2022/2023 and 2023/2024 commodity markets.

See the attachment for Dr. Lee’s 3-page summary of this webinar

If you would like to watch to recording, it can be accessed at:

https://osu.zoom.us/rec/share/vd7HMk8CeQ17DKsgBLeFRTvVs_oLbVrCNVVSsVSIbdHXvwscwtBf_VcnVS94KCGY.Bj3ROPKQlmkgPtC1?startTime=1676291418000

Farm Survey

Farmers, ranchers, and their partners raising children wanted! Researchers are looking for primary caregivers of children under 18 to participate in an online survey about how they are juggling children and work. Full- and part-time farmers and ranchers are welcome to participate and may choose to enter a raffle to win one of fifty $50 checks.

For questions or to request a paper survey, contact Florence Becotat at 715-389-9379 or becot.florence@marshfieldresearch.org

To fill out the online survey, visit this link:https://redcap.link/Survey1_FarmersRaisingChildren 

Ag Outlook – Great Lineup for Speakers on Tuesday, February 14

Join Defiance and Paulding County OSU Extension in Jewel, Ohio for the next Ag Outlook meeting on Tuesday, February 14 from 5:30 – 9:00 PM at the Jewell Community Center, 7900 Independence Rd., Defiance, OH 43512.

Agenda:

  • Welcome & Dinner—5:30 p.m. – Country-style dinner.
  • Commodity Grain Market Outlook, Seugnki Lee, PhD., Ohio State University, Department of Agricultural, Environmental and Development Economics
  • Long-Term Care: Is the Farm at Risk? — Robert Moore, JD., OSU Extension, Attorney, OSU Agricultural & Resource Law Program
  • 2023 Weather Outlook – Aaron Wilson, PhD., OSU Extension, Assistant Professor and Field Specialist, Ag Weather, and Climate

Registration is preferred online @ https://go.osu.edu/23DefianceOutlook or call the Defiance County Extension office at 419-782-4771
RSVP by February 13. NO LATE REGISTRATIONS.
CCA Credits Applied For and the Cost: $10.00/person

Check out the Official Flyer Here

Agricultural Guest workers in Ohio: What We Know and Where We’re Going

Please see the Agricultural Guestworkers in Ohio_invite for an exciting hybrid event presenting some novel research and a panel discussion about H-2A farmworkers in Ohio. All who are interested in the status of on-farm workers and agricultural labor issues in the state are very welcome! For those attending in person, light refreshments will be served. Please direct any questions to Dr. Margaret Jodlowski (jodlowski.1@osu.edu), Dept. of Agricultural, Environmental, and Development Economics. 

The program is In-Person or Virtual on Wednesday, February 15, 2023, and the program is 1-2:30 pm or Reception: 2:30-3:30 pm

In-Person Location: Room 250A Agricultural Administration Building; or Virtually via Zoom

Register here!

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Upcoming Labor Management Workshops – Build Your Farm Labor Management Know-How

The 2023 Workshop Series from the Farm Labor Dashboard project will help farm operators and managers build the knowledge and skills they need to successfully recruit and manage the right employees for their farms. The online series (offered via Zoom) is geared to produce and diversified livestock producers who are new to managing employees, and to farmers who are considering changes to how they arrange for and manage, labor on their farms.

Topics include practical approaches to building more successful work crews; conducting financial planning to meet payroll needs; practical and effective strategies for hiring, training, and keeping farm employees, and negotiation basics. Sessions begin January 7 and continue through early March.

A special session for agricultural service providers on January 10 will introduce tools and strategies to help farmers with payroll planning. Additionally, there will be monthly peer learning sessions for people who want to take a deeper dive into delegation, productive conflict, and other creative approaches to labor management.

Advance registration is required.

Learn more at the Farm Labor Dashboard or email beth.holtzman@uvm.edu.

The workshops are made possible by grant support provided by USDA/NIFA under award 2021-49400-35641.

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OSU Extension to Hold Planning for the Future of Your Farm Webinar Series in 2023

Family farming. Farmers grandfather with little grandson in a corn field. experienced grandfather explains to grandson the nature of plant growth.

OSU Extension will be hosting a four-part “Planning for the Future of Your Farm” webinar series on January 23 and 30 and February 6 and 13, 2023 from 6:30 to 8:00 p.m. This workshop is designed to help farm families learn strategies and tools to successfully create a succession and estate plan that helps you transfer your farm’s ownership, management, and assets to the next generation.

Full details on this opportunity can be found here.

Direct Link to Registration

Ag Lender Seminar Series – Save the Date

Check out the main site for updates. https://u.osu.edu/aglenderseminars/

2022 Agricultural Lender Seminar

This program is designed to share current information with lenders and enhance the working relationship between OSU Extension and Ag Lenders. The agenda is based on evaluations from previous seminars, and input from lenders and Agricultural Extension Educators on high-priority topics.

Your choice of four locations:

Tuesday, October 18, Ottawa, OH
Thursday, October 20, Urbana, OH
Thursday, October 20, Washington Court House, OH
Friday, October 21, Wooster
, OH
9:00 am—3:00 pm
Cost $75

Featured Speakers/Topics – COMING SOON!

Register Coming Soon!

Feel free to contact OSU Extension Defiance County at 419-782-4771 or clevenger.10@osu.edu

Ohio State University (OSU) Extension’s Ohio Women in Agriculture Program announces opportunities to Learn, Grow, Connect, Inspire and Empower at the 2022 Farm Science Review!

Some of the best conversations and discussions have occurred around the family kitchen table. Grab a cup of your favorite beverage, lunch, or snack and join us from our kitchen table or yours to engage in conversations in-person or “virtually” on September 20, 21, and 22, 2022 for “Kitchen Table Conversations” hosted by the Ohio Women in Agriculture of Ohio State University Extension.

These sessions are offered during the Farm Science Review daily from 11:30 AM-12:30 PM. In-person sessions will be located on the north side of the Firebaugh Building at 384 Friday Avenue at our kitchen table. ZOOM session registration is required to participate. Register @ https://go.osu.edu/2022fsrkitchentableconversation

Programs will focus on key topics related to health, marketing, finance, legal, and production for women in agriculture.  Each topic will feature a leading expert and moderators to generate dialogue and empower discussion among participants.  A list of daily topics and leaders is provided below. Continue reading

September Farm Office Live – September 22 @ 10:00 AM

Sept 2022 Farm Office LiveThis season’s Farm Office Live schedule is set! We return on September 22 at 10 am, live from Farm Science Review! Make sure to register for this season’s Farm Office Live by following this link: https://osu.zoom.us/webinar/register/WN_3V84ep3zT6SsKDJ_k_2FQg

Registration does not carry over from year to year. So, if you want to stay up to date with all the latest farm management and ag law issues, make sure to sign up!

2022 to 23 Farm Office Live Flyer

September Farm Office Live Slide

Survey for Ohio Cropland Values and Cash Rental Rates

Hello ANR Friends,

We are once again surveying ag professionals (Extension Educators, Farm Service Agency CEDs and County Committees, financial officers/lenders, appraisers, and others) across Ohio to generate information for those interested in farmland. You might notice that our timing is different this year. We hope that you’ll still be able to assist in this important survey effort for Ohio. We value your thoughts and responses greatly!

This year, there are three options to complete the short survey.

  1. Complete the survey online at: https://go.osu.edu/ohiocroplandvaluescashrents2122
  2. Complete the attached survey (Ohio Cropland Values and Cash Rents Short Survey 2022) by printing it out, filling it out, scanning, and emailing the completed survey back to ward.8@osu.edu
  3. Complete the survey in the body of this email and return it to ward.8@osu.edu (Please see the survey at the end of this email.)

You can also access the online survey through this QR code:

If you’re able to assist with this effort, we ask you to please complete the online or attached survey by April 30th, 2022.

All survey data will be anonymous and distributed only in a summary format. Summary conclusions from the latest survey of agriculture professionals, the “Western Ohio Cropland Values and Cash Rental Rates 2020-21”, are available online at: https://farmoffice.osu.edu/farm-management-tools/farm-management-publications/cash-rents

I would like to thank the many of you that have taken the time to share your thoughts and information with us in the past and thank you all in advance for your valuable time in providing data for this research! We expect it to benefit you and your clientele. Summary data of this research will be available via our Farm Office website: https://farmoffice.osu.edu/ and the free online OSU Extension newsletter, “Ohio Ag Manager”. Subscribe to receive this electronic newsletter at:  http://ohioagmanager.osu.edu/

Thank you!
Barry Ward, Director, OSU Income Tax Schools
Leader, Production Business Management
College of Food, Agricultural, and Environmental Sciences
Ohio State University Extension
614-688-3959 Office
ward.8@osu.edu
https://farmoffice.osu.edu/

Join us for Farm Office Live on April 22

I just wanted to shoot you all a quick note letting you know that this month’s Farm Office Live is two weeks away!  Yes, that means we have changed the date of this month’s Farm Office Live.  Instead of Wednesday, April 20th, Farm Office Live will now take place on Friday, April 22nd from 10:00 – 11:30 AM.

Topics on April 22 will include:

  • State and Federal Legislation Update
  • LLC Liability Protection Review
  • 2021 Midwest Farm Performance Preview
  • Fertilizer and Crop Budgets Update
  • FSA Program Updates
  • Ohio General Assembly Website Tour

March Edition of Farm Office Live

This month’s Farm Office Live will be held on March 16th, from 7 – 8:30 pm, and again on March 18th from 10 – 11:30 am. The Farm Office Team provides the latest outlook and updates on ag law, farm management, ag economics, farm business analysis, and other issues dealt with in your farm office.  Targeted to farmers and agribusiness stakeholders, our specialists digest the latest news and information and present it in an easy-to-understand format. To sign up for the webinar (and if you can’t attend the recording link) go to go.osu.edu/farmofficelive.

March topics will include

  • Updates on FSA programs
  • Federal Tax Law Update/Medicaid Planning Review
  • Financial Efficiency Review for Grain Farms
  • Fertilizer Update/Crop Budgets
  • Grain Marketing Outlook

ARC-County: What’s my County’s 2022 Guarantee Revenue – Deadline to sign Up at FSA is March 15

By:  Wm. Bruce Clevenger, OSU Extension

The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs were authorized by the 2014 and 2018 Farm Bills. Both programs are risk management tools. The ARC-CO (county) program provides income support tied to historical base acres, not current production, of covered commodities. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.

The Farm Service Agency (FSA) publishes county-level data online that provides the details used in the ARC-CO calculations. The 2022 Program Year-specific data contains the ARC-CO Benchmark Yields and Revenues using county-level yields and Market Year Average prices from 2016-2020. The data is organized by state and county name from Autauga County, Alabama to Weston County, Wyoming.

To access the data, visit the link and make two additional clicks:

https://www.fsa.usda.gov/programs-and-services/arcplc_program/arcplc-program-data/index

Click 2022 Program Year Specific Data

Click 2022 ARC-County Benchmark Yields and Revenues (Excel format)

A 2022 ARC-CO payment is made when the actual 2022 county crop revenue is less than the Guarantee Revenue for the covered commodity. The Guarantee Revenue is 86% of the county Benchmark Revenue, based on the Olympic average county yields and Olympic average Market Year Average (MYA) price for five prior years.

Q: What is the value of knowing your county’s 2022 Guarantee Revenue?
A: A producer can then contemplate conditions that may occur in national price and their specific county yields that would trigger or not trigger a 2022 payment.

Q: What is the difference between ARC-CO and PLC?
A: ARC-CO is a revenue (price and yield) risk program; PLC is a price risk program.

Q: How much do we know about the 2022 crop yields and 2022 commodity prices to make ARC/PLC decisions?
A: County yields are as (un)predictable as the weather. Even trend yields, retrospectively, have significant past volatility. Market analysis and futures prices can be some indicators of price, but they are based on what the market knows and reacts to today. Risk management is not about predicting the future, it’s about being prepared.

The USDA-FSA programs are offered as risk management choices and not a guaranteed payment program. Crop prices, production systems, and other risk management tools should be considered as producers make the ARC/PLC election/enrollment by March 15.