Enrollment Period for ARC and PLC Now Open

The USDA has announced that eligible producers may now officially enroll in Agricultural Price Coverage (ARC) or Price Loss Coverage (PLC) programs for the 2014 and 2015 crop years.  Enrollment officially begins tomorrow, June 17, 2015 and runs through September 31, 2015.

Nationally, 96% of soybean farms, 91% of corn farms,  and 66% of wheat farms elected ARC-County coverage.  In Nebraska:

  • 53% of barley farms elected PLC, whereas 47% elected ARC-County;
  • 5% of corn farms elected PLC, whereas 95% elected ARC-County;
  • 31% of grain sorghum farms elected PLC, whereas 69% elected ARC-County;
  • 16% of oat farms elected PLC, whereas 84% elected ARC-County;
  • 3% of soybean farms elected PLC, whereas 97% elected ARC-County; and
  • 34% of wheat farms elected PLC, whereas 65% elected ARC-County.

The link also contains information about canola, dry peas, flax, lentils, large chickpeas, mustard, peanuts, safflower, small chickpeas, and sunflowers if those crops of are interest to you.

 

Deadline Extension For Updating Basis and Yield

A quick note that serves as an addendum to yesterday’s post.  The USDA has announced a one-time extension to update basis and yield due to the implementation of ARC and PLC safety-net programs.

The deadline to update basis and yield is extended from February 28, 2015 to March 31, 2015.  This is the same date for producers to elect between ARC and PLC coverage.

If no updates are made to basis and/or yield, the farm’s current base and yield will be used.  Additionally, if no election between PLC and ARC is made by March 31, 2015, the farm will automatically be enrolled for PLC coverage through the 2018 crop year  and no payments for the 2014 crop year will be made.

In short:  make the time to study the choices, use the online decision-tools and head over to your local FSA office with questions and to make elections if so desired.

ARC versus PLC decision required soon

As many readers of this blog are aware, there are looming deadlines for the ARC and PLC programs.  Landowners must decide whether to update their program payment yields and whether to reallocate their program base acreage by February 27, 2015.  Additionally, producers must decide between ARC and PLC coverage by March 31, 2015.

The latest issue of Cornhusker Economics discusses the above decisions from an economic standpoint that will likely be very helpful to Nebraska landowners and producers.  The article is well worth the read; below, I highlight some interesting bits of information but I cannot stress enough — read the entire article as it is worth your time.

First, yield updates.  Landowners can choose between keeping their current counter-cyclical payment yields or updating their payment yields based upon actual average yields per planted acre from 2008 to 2012.  Producers can choose between keeping their current payment yield or updating their payment yield on a crop-by-crop, farm-by-farm basis.

Next base acreage updates.  This is, as the article notes, an all-or-nothing decision.  The crux of the decision for landowners is, on a farm-by-farm basis, whether to keep current program base acreage or reallocating according to the average mix of planted and prevented-planted acres of program commodities from 2009 to 2012.

We then turn to the big decision: ARC versus PLC.  Note that it is the producer, not the landowner, who makes the ARC or PLC decision.  The decision is a one-time decision that is binding for the 2014 to 2018 crops years.  If no decision is made, the default is PLC coverage that cannot be changed at a later date.

The remainder of the article discusses the economic decision-making behind the choice of ARC and PLC.  The decision between ARC and PLC is dependent upon the program crops grown in your operation, projected prices for commodity crops, and your comfort with the possible outcomes.

Again, check out the article.  It provides a bevy of charts and graphs to explain the decision-making that producers and landowners must undertake if they wish to update yields and base acres, as well as the decision by producers between ARC and PLC.  And remember, the deadlines are looming so take the time to analyze the best path forward for you!

 

USDA releases decision-making tools for ARC and PLC coverage

The USDA has released two new decision tool to assist farmers in selecting ARC or PLC coverage.  The first decision tool is led by Texas A&M and the University of Missouri.  The second decision tool is from the University of Illinois.

The USDA also announced key dates farmers need to know as ARC and PLC are ushered in:

September 29, 2014 to February 27, 2015 — Land owners may visit their local FSA office to update yield history and/or reallocate base acres

November 17, 2014 to March 31, 2015 — Producers make a one-time election of either ARC or PLC for the 2014 to 2018 crop years

Mid-April 2015 through summer 2015 — Producers sign contracts for 2014 and 2015 crop year

October 2015 — Payments for 2014 crop year, if needed