MSU-ES-GenericBasePaymentCreditCalculator If a farm has generic base acreage under the Agricultural Act of 2014, ARC-CO and PLC payments (if triggered) for Title I covered commodities planted on that farm will be coupled to the generic base acres. Because of this new relation of potential farm program payments to plantings, the potential cash flows from these programs should be included in the budgeting process for crop mix decisions. This spreadsheet is designed to help producers in making those calculations.
Farm Bill Learning Sessions Scheduled
Multiple workshops related to the 2014 farm bill have been scheduled for December. These workshops are targeted at our numerous crop producers and will provide detailed information on the new ‘covered commodity’ programs (ARC & PLC), new crop insurance products (SCO & STAX), the available decision aids, and what this all means for farm risk management. At the conclusion of this series, if more workshops are needed please let us know and we will schedule them in January 2015.
Please help us get the word out to as many impacted producers in the state.
For more information contact John Michael Riley, 662.325.7986, j.m.riley ‘at’ msstate.edu
Topics Covered:
Agricultural Risk Coverage (ARC)
Price Loss Coverage (PLC)
Supplemental Coverage Option (SCO)
Stacked Income Protection Plan (STAX)
Farm Risk Management
Decision Aids
Agricultural Risk Coverage (ARC)
Price Loss Coverage (PLC)
Supplemental Coverage Option (SCO)
Stacked Income Protection Plan (STAX)
Farm Risk Management
Decision Aids
Where/When:
December 3**, 9:00 AM – 12:00 PM :: Lincoln Civic Center, 1096 Belt Line Dr NE, Brookhaven, MS 39601
December 4, 9:00 AM – 12:00 PM :: The Extension Building, 394 Hwy 51 S, Batesville, MS 38606
December 10, 1:00 PM – 4:00 PM & 6:00 PM – 8:30 PM :: Yazoo County Extension Office, 212 E. Broadway, Yazoo City, MS 39194
December 11, 9:00 AM – 12:00 PM :: Costal Plains Research & Extension Center, 51 Coastal Plain Rd, Newton, MS 39345
December 17, 1:00 PM – 4:00 PM :: Lightered Knot Community Center, 401 E Pine Ave, Wiggins, MS 39577
December 18, 9:00 AM – 12:00 PM :: Pontotoc County Extension Office, 402 C.J. Hardin Jr. Drive, Pontotoc, MS 38863
December 19, 1:00 PM – 4:00 PM :: Bost Extension Building (MSU Campus), Bost Extension Dr, Mississippi State, MS 39762
**Keith will provide similar details at the 2014 Row Crops Shortcourse, which overlaps with this date.
2014 Farm Bill – Important Sign Up Dates
Dates associated with Cotton Transition Assistance Program (CTAP), Agricultural Risk Coverage (ARC) program and Price Loss Coverage (PLC) program that farm owners and producers need to know:
Aug. 11, 2014 through Oct. 7, 2014: Producers can enroll in CTAP at their local Farm Service Agency office.
Sept. 29, 2014 to Feb. 27, 2015: Land owners may visit their local Farm Service Agency office to update yield history and/or reallocate base acres.
Nov. 17, 2014 to March 31, 2015: Producers make a one-time election of either ARC or PLC for the 2014 through 2018 crop years.
Mid-April 2015 through summer 2015: Producers sign contracts for 2014 and 2015 crop years
Supplemental Coverage Available for 2015 Mississippi Winter Wheat
The Supplemental Coverage Option (SCO) crop insurance endorsement will be available to winter wheat producers in Bolivar, Coahoma, Sunflower, Tallahatchie and Washington counties for 2015. SCO was authorized in the Agricultural Act of 2014 and will provide an indemnity payment when yield or market revenue (depending on whether the producer has a yield protection or revenue protection policy) measured at the county level falls below 86 percent of the expected county revenue as determined from county yield histories and futures prices.
The SCO indemnity payment size is determined by the proportion of the range of the loss below 86 percent down to the nominal coverage level of the producer’s farm-level crop insurance. A producer will pay 35% of the actuarially-fair premium (65% subsidy) for SCO coverage. While the indemnity is triggered by county level production or revenue, the producer’s actual production history yield is used calculate both the SCO indemnity and SCO premium.
Winter wheat producers in the five eligible counties will need to make SCO participation decisions by the September 30, 2014 sales closing date. Risk Management Agency will have the projected price for winter wheat available after September 14, 2014, at which time premiums will also be calculated.
A producer is not required to purchase SCO coverage. SCO is not available for acreage enrolled in the Farm Service Agency’s (FSA) Agricultural Risk Coverage (ARC) program. For fall planted wheat for the 2015 crop year only, an insured who applies for SCO and later elects to participate in ARC for winter wheat has until the earlier of the acreage reporting date or December 15, 2014 for any fall-planted wheat with an acreage reporting date after December 15, 2014 to withdraw SCO coverage on winter wheat on the farm for which ARC was elected for winter wheat and owe no premium. This is a one-time exemption that will only be allowed for 2015 crop year for fall planted wheat, to recognize that the ARC program rules may not yet be available to the public (FCIC-18180).
Producers who intend to plant winter wheat this fall in the five eligible counties are encouraged to contact their crop insurance agents regarding this important decision.
Farm Bill Presentations, Support Tools, and Calculators
This page will provide links to presentations and various tools that we create. Please check back frequently as new tools will be added and updates to existing tools will be provided. If you have any questions or find any errors with any of these tools please feel free to contact us or leave a comment below.
Farm Bill Learning Session Presentations (December 2014):
Farm Bill Decision Aids (part 1)
Farm Bill Decision Aids (part 2)
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Base Reallocation Calculator v 1.0 [updated April 8, 2014]
:: Previous versions: N/A
Generic Base Distribution Calculator v 1.1 [updated April 14, 2014]
:: Previous versions:
- v 1.0, April 8, 2014
USDA Encourages Early Registration for FSA Programs
The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) Administrator Juan M. Garcia today recommended that farmers and ranchers who plan to participate in FSA programs register in advance. Producers are encouraged to report farm records and business structure changes to a local FSA Service Center before April 15, 2014.
Enrollment for the disaster programs authorized by the 2014 Farm Bill, including the Livestock Indemnity Program (LIP) and the Livestock Forage Disaster Program (LFP) will begin by April 15, 2014.
Summary of the Agricultural Act of 2014
The recent passage of the 2014 Farm Bill (formally known as the Agricultural Act of 2014) brings about some significant changes in agricultural policies, specifically within Titles One and Eleven in the legislation. The following summarizes the key changes that were made, the new programs that are being made available to landowners and producers, and the decisions that these individuals or firms will need to make.
First, from Title One, the new bill eliminates Direct Payments, the Counter-Cyclical program (CCP), the Average Crop Revenue Election program (ACRE), and the supplemental revenue assistance program. Marketing loans are retained and unchanged.
New offerings for 2014 through 2018 are Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC). PLC and ARC cannot be chosen for the same base acres and committing to either PLC or ARC is locked for the duration of the current Farm Bill (5 years). Also, for 2014 only, transition payments for current cotton base acres and yield will be available.
Two new Title Eleven products are Stacked Income Protection Plan (STAX) for planted cotton acres and Supplemental Coverage Option (SCO) for other covered program crops. Both STAX and SCO are an “insurance styled” revenue protection coverage.
For more detail on these new offerings click HERE and for a breakdown on each individual program click the acronym: ARC, PLC, STAX (including information on 2014 transition payments), and SCO.
With respect to base acres, landowners are provided the opportunity to reallocate the current base acre allotment. This attempts to bring current base allotment more in-line with recent plantings. The reallocation of covered commodities will be in proportion to the 4-year average of the planted acres (actual planted and prevented plantings) from 2009 to 2012 crop years. Also, yields can be updated to reflect 90% of the 5-year average from 2008 to 2012.
Given that cotton is no longer a covered (Title One) commodity, current cotton base can be converted to “generic” base. In any year that generic base is planted to a covered commodity, that base will fall in-line with the program choice for that commodity. For example, if soybeans are allocated to generic base in 2015 then the generic base will be follow the soybean program chosen (ARC or PLC). Then if corn were planted to the generic base in 2016, the generic base would follow the corn program chosen (ARC or PLC).
Projected Prices for Crop Insurance Are Sharply Lower for 2014
Recently released prices that are used by the Risk Management Agency of USDA to establish crop insurance protection levels for major crops in Mississippi are sharply lower for the coming crop year. Projected prices for conventional rice production are 11.5% below last year at $13.90 per hundredweight. The projected price for upland cotton is $.78 per pound, down 3.7% from 2013. Projected prices for conventional corn production declined the most, dropping from $5.82 per bushel to $4.53 per bushel, a decline of 22.2%. Soybean projected prices declined 14.6%, to $11.14 per bushel.
The sales closing date for crop insurance in Mississippi for most row crops and rice is February 28.
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