Jim Pease, (firstname.lastname@example.org) Professor
Agricultural and Applied Economics, Virginia Tech
If you’re a producer who has not yet filed an FSA form CCC-857 for your election of Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC), there is little time remaining to make an appointment with your local FSA office. The deadline is March 31, 2015 for this important commodity program decision. Continue reading
USDA National Agricultural Statistical Service (NASS) released cash rental rates for 2014 irrigated and non-irrigated cropland and pastureland for Virginia counties and cities. See the following PDF file for details
2014 NASS Cropland and Pastureland Rental Rates
The deadline for farmland owners to register program base acre reallocation and payment yield update decisions with USDA/Farm Service Agency is March 31, 2015. Many landowners will not understand the choices or will not make the effort to work with the cash tenant. “So why should I care – the payments all go to the cash tenant, not me.” True, but shortsighted. The rental rate and market value of farmland are based partly on the farm’s potential to generate commodity payments. If base reallocation and payment yield choices are not made, the value of the farmland may well be reduced. Continue reading
James Pease, Professor, Department of Agricultural and Applied Economics, Virginia Tech
Although FSA has extended the deadline for commodity program base acreage reallocation and payment yield updates to March 31 for farm landowners, the agency has held firm to the March 31 deadline for producers to choose among ARC-county, PLC, or ARC-farm programs. If the landowner simply does not act by March 31, then covered commodity base acres and payment yields on the FSA farm will remain at their current values throughout 2014-2018.
However, this inaction creates a problem for some producers. The base reallocation and/or yield update landowner choice must be completed prior to the producer choice of program. If the landowner doesn’t act by March 31, the producer has no time to choose a desired commodity program. Without base reallocation/yield update actions by the landowner (either to retain or reallocate/update), producers will not be able to make a program choice, and will find themselves assigned to the no-action program choice – Price Loss Coverage for 2015-2018, with no 2014 payments. The payment consequences for producers are most obvious for crops such as soybeans, for which virtually no one has forecast a marketing-year average price below the Reference Price of $8.40 throughout 2014-2018. Producers should do whatever they can to ensure landowner base acre and yield update choices are recorded with FSA as quickly as possible.