Deadlines Approaching for Farm Program Sign-Ups

As we approach the spring and the planting season, it is a good idea to take a long, hard look at the various programs available for assistance and their respective deadlines.  In chronological order:

Conservation Stewardship Program — The deadline for CSP sign-up is extended to Friday, March 13, 2015.  We’ve previously discussed CSP and the benefits that may accrue to applicants.  If you are interested, head over to your local NRCS office to complete the initial two-page application.

Environmental Quality Incentives Program — EQIP has rolling deadlines of March 20, April 17, and May 15.  EQIP is a voluntary working lands program offering farmers and ranchers cost-share funding and technical assistance.  EQIP now provides up to a 50% cost-share for beginning and limited resource farmers.  EQIP can help fund a number of projects, including high tunnels, organic conservation, and other conservation practices.  Like CSP, just head over to your local NRCS office for more information as it varies state by state.

Organic Production Survey — The survey is due April 3, 2015.  The survey is specifically for the organic sector, to determine growth, trends, and challenges.  The survey may be taken electronically, so feel free to review our previous article and let the USDA know what you think.

 

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!