Wednesday, February 12, 2014

Kansas: K-State to Host Webinar on Farm Bill on Feb. 21

AgFax.Com - Your Online Ag News Source


The long-awaited Agricultural Act of 2014, otherwise known as the farm bill, signed into law on Feb. 7 ends direct payments to farmers but still provides some safety net programs – and that’s just for starters.

“This new five-year legislation means the beginning of several new programs for agricultural producers,” said Kansas State University agricultural economist Art Barnaby. “It also means the end of some familiar programs, including SURE (Supplemental Revenue Assistance) and ACRE (Average Crop Revenue Election).”

While the new legislation does away with direct payments, it includes two new safety net programs, Agriculture Risk Coverage and Price Loss Coverage, designed to help farmers when crop prices or revenue are low. Producers will have to make a one-time irrevocable decision this year to select one of the two programs. If they do not choose, the PLC is the default option and they would give up any 2014 payment.

The two programs are separate from traditional crop insurance programs, which remain largely unchanged, but with some significant improvements, Barnaby said. Improvements include separate enterprise units for irrigated versus dryland agriculture and farmers may select different coverage levels for a dryland enterprise unit versus an irrigated enterprise unit on the same crop. If the county suffers a 50-percent yield loss, then farmers in that county and contiguous counties are allowed to exclude that low yield out of their actual production history and avoid a reduction in their APH.

K-State Research and Extension will host a one-hour webinar, “The New Farm Bill,” on Friday, Feb. 21 in which Barnaby, a risk management specialist, will discuss the legislation and what it means to producers.

The presentation will include National Agricultural Statistics Service prices and yield used for the calculation of payments, as well as changes to crop insurance. More information and registration is available online here or by contacting Rich Llewelyn at rvl@ksu.edu or 785-532-1504.

Barnaby will also discuss the new farm bill on Thursday, Feb. 27 in Scott City, Kan. in a two-part workshop, “New Farm Bill Commodities Programs and Risk-Assessed Marketing II Workshop.” More information and registration for those programs is available by contacting John Beckman at jbeckman@ksu.edu or 620-872-2930.

Agriculture Risk Coverage – This new program covers what farmers would lose before their regular crop insurance kicks in. It provides protection when crop revenue falls just 14 percent below a five-year rolling Olympic average benchmark. A farmer chooses whether the benchmark is based on county yield times crop year average prices or his or her individual crop yield times the price. The county payment is based on 85 percent of the farmer’s base acres, but if they elect individual coverage they must enroll all crops in to ARC and payments are made on 65 percent of base acres.

“If producers think prices will trend at or near current levels over the next five years, Agriculture Risk Coverage (ARC) is more likely to pay because the five-year Olympic market average price for many crops are above current prices,” he said. “But producers can only collect 10 percent of their coverage under the ARC program, and lower prices will cause the Olympic average price to decline over the life of the ARC program.”

Olympic averages are found by removing the high and low price before calculating the average of the remaining prices.

Price Loss Coverage – In the PLC program, farmers will receive payments if the crop price falls below certain “target” or reference prices. The USDA has set a $5.50-per-bushel reference price on wheat, for example, Barnaby said. If the cash wheat price falls below $5.50, farmers will be paid the difference between $5.50 and the lower price times their updated program yield times 85 percent of their base acres.  Reference prices set as part of the new legislation for some other commodities (per bushel) include $3.70 for corn; $3.95 for grain sorghum; $8.40 for soybeans; $2.40 for oats; and $4.95 for oats.

“The (PLC) potentially has the bigger payout, but is less likely to happen than an ARC payment,” he said. If prices stay above the reference price, the PLC program will not make payments to farmers.”

Farmers who select PLC will be eligible for the Supplemental Coverage Option, as well, although that program will not be available until the 2015 crop year because the crop insurance contract change date has passed for 2014. Because it is insurance, it will follow insurance rules and payments will be based on county yields and insurance prices. It will cover a share of a farmer’s deductible in their farm level crop insurance, there is no payment limit, and the payments cannot be sequestered. SCO payments will be made six months earlier than ARC or PLC payments, but farmers must pay 35 percent of the SCO premium costs.

“Producers don’t have to make decisions right away, but now would be a good time for them to gather their records together. They’ll need acreage and yield data to update their information because many farmers will want to reallocate their base acres and update their program yields when they sign up,” Barnaby said. He expects updating base acres will increase feedgrain base acres and reduce wheat base acres; in both Kansas and at the national level.

“A lot of farmers will benefit from updating their program yields because their production has increased from yields used to set those program yields many years ago,” he said.

USDA has not issued signup dates yet, but Barnaby believes that given the changes that come with the new legislation, June 1 is the earliest that farmers will have to make a decision about which program to choose. Signups could be as late as August, he added, noting that the Farm Service Agency has much work to do before signup, including writing and publishing implementation rules, software development for enrollment, and training for their county personnel.

New programs available under the new legislation include the Stacked Income Protection Plan (STAX) for cotton and a new program for dairy producers. Total commodity support program payments under the new farm bill (independent from crop insurance payments) will be limited to $125,000 per individual or $250,000 per couple.

Tags: , , , ,


Leave a Reply

Name and Email Address are required fields. Your email will not be published or shared with third parties.

Sunbelt Ag News

    Crop Subsidies Deadine: Confusing Info, 25% Farmers Still Not Sure What to Do – Keith Good3-27

    Texas A&M: Run USDA On-Line Decision Tool Again. Say What? – Keith Good3-27

    DTN Livestock Open: Limited Feedlot Offerings3-27

    DTN Grain Open: Pressure By Rally in the U.S. Dollar Index3-27

    Death Tax: South Dakota Congressman Pushes Repeal, Tells Her Story – Video3-26

    Grain TV: Strong Soybean Exports, Corn Sales Disappointing3-26

    Environmental Group Questions USDA’s Science Integrity – DTN3-26

    Making Money With Manure, Advantages of Composting and Additives – DTN3-26

    DTN Livestock Close: Futures Pruned by Profit Taking3-26

    Chumrau on Wheat: Where More Rain is Needed to Make the HRW Crop3-26

    Texas Wheat: Concho, McCulloch Counties Wheat Tour, Millersview, April 303-26

    Sorghum: Why It’s South China’s Hottest Import Grain – DTN3-26

    ELS Cotton Competitive Payment Rate Is Zero3-26

    DTN Cotton Close: U.S. Premium Widens3-26

    Moving Grain: Ohio River Barge Traffic Improves3-26

    Video: Summary of U.S. Drought Monitor in One Minute3-26

    Drought Monitor: Warm, Dry Weather Further Depletes Snowpacks3-26

    Wheat Yields: What to Expect? A Historical Perspective – farmdoc3-26

    DTN Grain Close: New Market Year Low3-26

    DTN Livestock Midday: Lack of Additional Buyer Support3-26

    DTN Grain Midday: South American Harvest Moving Toward Completion3-26

    Oklahoma: Ag Pesticide Disposal, Purcell, April 223-26

    Residential Propane, Heating Oil: Prices Decrease3-26

    Diesel: Prices Decrease3-26

    Gasoline: Prices Up Slightly3-26

    DTN Cotton Open: Cash Grower Sales Slumped3-26

    U.S. Energy: Gasoline Specifications Change and So Does the Price3-26

    Midwest Soybean Plantings Up If Weather Delays Continue – DTN3-26

    New Swine Census Expected to be Full of “Oopsies” – DTN3-26

    Grain TV: Increased Ethanol Production3-25

    AgFax Grain Review: Manage for Higher Soy Yields; Less Corn to Switch to Soybeans3-25

    Michigan: 31 Counties Designated Natural Disaster Areas3-25

    Oklahoma: Payne County Designated Natural Disaster Area3-25

    Marketing: Are You Really Getting the Best Price for Your Crop? – farmdoc3-25

    Spray Drift: Checking Wind Speed Isn’t Enough – DTN3-25

    Irrigation – Moisture Sensors Pay Dividends, Says This Consultant (Podcast)3-25

    Illinois Soybean Farmers Asked to Complete Online Survey3-25

    Grain TV: Improved Crop Conditions in Southern Plains3-24

    AFB Grain-Soybean Close: Dollar Support Gives Way3-24

    AFB Cotton Close: Dec. Holds Above 643-24

    AFB Rice Close: Unable to Hold Daily Highs3-24

    Welch on Wheat: Crop Conditions Continue to Improve3-24

    California Tree Crops: 12 Quick Things To Know This Week (Video)3-24

    Welch on Grain: Fewer Corn Acres, More Soybeans Expected in USDA Reports3-24

    Peanuts: Southern Growers Conference Set For July 23-253-24

    Farm Bill: USDA Seeks to Limit Payments to Non-Farmers3-24

    Planting: 11 Maintenance Steps for Your Planter3-24

    Crop Production Forecast: Needing a Clearer Crystal Ball – USDA Blog3-24

    USDA: Weekly National Peanut Prices3-24

    Non-Family Farm Managers: Proof Required for Program Payments, 2016 – DTN3-24

    DTN Fertilizer Trends: Price Stability Could Be an Illusion3-24

    Avian Flu Prevention is the Best Form of Poultry Protection – DTN3-24

    Farm Programs: Expected Payment Estimates for Last Minute Decisions – farmdoc3-24

    Rice: Nitrogen-Efficient Varieties Demonstrate Significant Yield Increases3-24

    Farmers Gained New Markets In The ’20s, Thanks To Clarence3-24

    Cotton: Aerial Imaging Pinpoints Root Rot, Could Help Save Money3-24

    Corn: AQUAmax Hybrids Show Advantage In Drought-Tolerance Study3-24

    China Wants Its Own Version of Monsanto, Really. – Keith Good3-24

    Farmers Anticipate Hard Times; Weather, Water Issues in the West – Keith Good3-24

    Farmer Confidence Index Lowest in Decade; Southwest Most Optimistic – DTN Survey3-24

    Glyphosate Harmful to Humans? Time for a Throw Down. – AgFax3-23

    California: 7 Quick Things to Know this Week about Field Crops (Video)3-23

    White House Pushes Rural Broadband as Economy Driver – DTN3-23

    Midwest States Consider Tighter Regulations on Manure – DTN3-23

    Good on Grain: Will Soybean Stocks Be Overshadowed by Planting Intentions?3-23

    Peanuts: USDA Announced Special Loan Repayment Rates3-23

    Louisiana Crawfish: 3 Problems Causing Early Deaths3-23

    Precision Agriculture: Topcon Positioning Group Acquires Digi-Star3-23

    Louisiana: 3 Soil Health Workshops Scheduled April 7-93-23

    DTN Cotton Open: Chinese Imports Fall3-23

    Corn: Starter Fertilization Can Sometimes Boost Yield3-23

    Flint on Crops: Weather Lottery – Do You Feel Lucky?3-23

    Sunbelt Ag Events

     

    About Us

    AgFax.Com covers agricultural trends and production topics, with an emphasis on news about cotton, rice, peanuts, corn, soybeans, wheat and tree crops, including almonds, pecans, walnuts and pistachios.

      

    This site also serves as the on-line presence of electronic crop and pest reports published by AgFax Media LLC (formerly Looking South Communications).

        

    Click here to subscribe to our free reports.

      

    We provide early warnings and confirmations about pests, diseases and other factors that influence yield. Our goal is to quickly provide farmers and crop advisors with information needed to make better and more profitable decisions.

         

    Our free weekly crop and pest advisories include:

    • AgFax Midsouth Cotton, covering cotton production and news in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Missouri.

    • AgFax Southeast Cotton, covering cotton production and news in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia.

    • AgFax Southwest Cotton (new for 2013!), covering cotton production and news in Texas, Oklahoma, Kansas and New Mexico.

    • AgFax West (formerly MiteFax: SJV Cotton), covering California cotton, alfalfa, tomatoes and other non-permanent crops in California's Central Valley.

    • AgFax Rice covering rice production and news in Arkansas, Louisiana, Mississippi, Missouri and Texas.

    • AgFax Peanuts, covering peanut production in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas and Virginia.

    • AgFax Southern Grain: covering soybeans, corn, milo and small grains in Southern states.

    • AgFax Almonds, covering almonds, pistachios, walnuts and other tree crops in California's Central Valley.

    • AgCom 101, providing guidance to ag professionals involved in social media.

    Our newsletters are sponsored by the following companies: FMC Corporation Chemtura Dow AgroSciences.

          

    Mission statement:

    Make it as easy as possible for our community of readers to find and/or receive needed information.

              

    Contact Information:

    AgFax Media. LLC

    142 Westlake Drive Brandon, MS 39047

    601-992-9488 Office

    Owen Taylor Debra L. Ferguson Laurie Courtney

          

    Circulation Questions?

    Contact Laurie Courtney +