Tag Archives: Farm Bill

Down to the Wire: A Few More Considerations

Jim Pease, Professor, Agricultural & Applied Economics, Virginia Tech

April 7 is the final day for farm landowners to reallocate commodity program base acres and update payment yields, and for producers to choose between Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC). According to the March 27 USDA announcement of the new deadline, nearly 98 percent of owners had completed the base acre/payment yield process, and 90 percent of producers had elected either ARC-CO (county-coverage), ARC-IC (farm-coverage), or PLC. For the remaining landowners and producers, it’s time to act, because inaction will cause the following: 1) all program crops on all your FSA farms owned or operated will continue with existing base acre allocations and payment yields, 2) all program crops on all your FSA farms will be assigned to PLC during 2015-2018, and 3) no 2014 ARC or PLC payments will be received. The cost of inaction was described earlier in this blog in “Corn ARC-Co and PLC Forecast Payments: Look Carefully Before Choosing!”  Continue reading

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Farmland Owners – Bad, More Bad, and Worst

Jim Pease, Professor, Agricultural and Applied Economics, Virginia Tech

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

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Possible Negative Consequences for Producers from Extending Base Reallocation and Payment Yield Update Deadlines

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.

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USDA Provides One-Time Extension of Deadline to Update Base Acres or Yield History for ARC/PLC Programs

USDA Provides One-Time Extension of Deadline to Update Base Acres or Yield History for ARC/PLC Programs

Farmers Now Have Until March 31 to Update Yields and Reallocate Base Acres; Deadline for Choosing Between ARC and PLC also Remains March 31

WASHINGTON, Feb. 27, 2015 — Agriculture Secretary Tom Vilsack announced today that a one-time extension will be provided to producers for the new safety-net programs established by the 2014 Farm Bill, known as Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). The final day to update yield history or reallocate base acres has been extended one additional month, from Feb. 27, 2015 until March 31, 2015. The final day for farm owners and producers to choose ARC or PLC coverage also remains March 31, 2015.

Visit http://www.usda.gov/wps/portal/usda/usdahome?contentid=2015/02/0051.xml&contentidonly=true to read the full press release from USDA.

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February Farm Bill Deadline for Landowners and Producers

Dr. Jim Pease, Professor and Extension Economist

February 27, 2015 is the last day that landowners or producers with landowner proxy can choose to re-allocate 2014-2018 farm program acres or update program payment yields. The deadline is fixed and will not be extended, and the choices made are irrevocable until after 2018. It is very important for both parties to evaluate options and take action now on desired options. Continue reading

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Farm Bill Webinar: Commodity, Conservation, and Crop Insurance Titles

Dr. Jim Pease gives insight into the Commodity Title, Conservation Title and relevant portions of the Crop Insurance Title pieces of the Agricultural Act of 2014 this tapped webinar:http://connect.ag.vt.edu/p38z40z47yg/?launcher=false&fcsContent=true&pbMode=normal. Continue reading

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