2014 Farm Bill Programs

Women Managing the Farm Conference

February 5, 2015

2014 Farm Bill Programs:

Agricultural Risk Coverage

Price Loss Coverage

Noninsured Disaster Assistance Program

Livestock Disaster Programs

Dairy Programs

FSA 2014 Farm Bill Training 1

Basic Provisions

• Title I, Agriculture Act of 2014

(Pub. L. 113-79)

Two New Programs

– Agricultural Risk Coverage (ARC)

– Price Loss Coverage (PLC)

ARC/PLC Basic ProvisionsFSA 2014 Farm Bill Training 2

Agricultural Risk Coverage

(ARC) Overview

• ARC program offers “Revenue” loss

coverage for selected covered

commodities

Two Options under ARC program

– ARC-CO: County Level Loss Coverage

– ARC-IC: Individual Level Loss Coverage

ARC/PLC Basic ProvisionsFSA 2014 Farm Bill Training 3

ARC-CO Overview

• ARC-County:

– protects against crop revenue shortfalls

– price and/or production declines per

covered commodity

– at the “COUNTY” level

FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 4

ARC-IC Overview

• ARC-Individual Coverage:

– protects against crop revenue shortfalls

– price and/or Production declines across

– ALL covered commodities planted at the

“Farm” level across ALL farms

enrolled in ARC-IC in the STATE


Price Loss Coverage (PLC)

Overview

• Provides an income safety net when

prices of covered commodities are

below “reference” prices set by statue

(Price Protection)

• Decline in “production” is NOT covered

under PLC


ARC/PLC Comparison to

DCP/ACRE ARC/PLC DCP/ACRE

PLC is similar to Counter-Cyclical

under DCP. Price Protection NO

Direct Payments

DCP had Direct Payments and then

Price Protection under Counter-

Cyclical

ARC is a “modified” version of

ACRE with Revenue protection

ACRE provided Revenue protection

and had Direct Payments with a

reduction of 20%

ARC has two options: ARC-County

or ARC-Individual Coverage

ACRE required two Triggers: State

Trigger and Farm Trigger

Upland Cotton bases become

“Generic” base acres

Upland Cotton was a base acre

crop

One-Time Election required for

2014 through 2018 or if no election

completed then PLC for the farm bill

with no payment in 2014

ACRE could be elected starting in

2009 or in a later year through

2013. Once ACRE was elected for

a year then irrevocable.


Covered Commodities

• Crops for which base acres have been established according to Statute and regulations

• For 2014 and subsequent crop years, Cotton is not a covered commodity

• “Cotton” base become GENERIC base acres under the ARC/PLC program,

2014-2018


Covered Commodities

21 Covered Commodities

Barley Canola Corn

Crambe Flaxseed Garbanzo, Large

Garbanzo, Small Grain Sorghum Lentils

Mustard Seed Oats Peanuts

Peas, Dry Rapeseed Rice, Long Grain

Rice, Medium Grain Safflowers Sesame Seed

Soybeans Sunflower Seed Wheat

NOTES: Cotton is NOT a Covered Commodity under the 2014 Ag Act

ARCPLC-7 provides “types” and “intend uses”


Covered Commodities


– Listing of the 21 Covered Commodities

– Listing specifies eligible “TYPE” and

eligible “INTENDED USES”

Covered Commodities

FSA 2014 Farm Bill Training Program Name Here 11

Covered Commodities


Base Acres

• Definition:

Base Acres of a covered commodity

on a farm in effect on September 30,

2013

• May restore bases after election period

if CRP acres expire and base has been

associated with the CRP


Base Acres

Options on Base election:

• May keep current bases on the farm

• May re-allocate bases on the farm

using 2009-2012 historical planting

data


Payment Acres

ARC-CO & PLC Programs

• Payment Acres:

Equal to 85% of the specific covered commodity base acres on a farm

Example, Farm #123:

Corn Base – 100 acres

ARC-CO/PLC Payment Acres – 85 acres

(100 acres X 85% = 85 acres)


Payment Acres

ARC-IC Program

• Payment Acres:

Equal to 65% of TOTAL covered commodity base acres on a farm

Example, Farm #234:

Corn Base – 100 acres

Wheat Base – 50 acres

ARC-IC Payment Acres – 97.5 acres(150 acres X 65% = 97.5 acres)


Payment Yield

• Counter-Cyclical Yield for the covered commodity

• Updated Yield, 2008-2012 history using simple average for years crop was planted X 90%

• CC Yield or Updated Yield will become “PLC” Yield

• Direct Yields are not utilized under the ARC/PLC program


Payment Yield

• Will certify yield on the farm for years

crop was planted

• If certified yield for applicable farm is

lower than 75% of the county average

yield, may substitute this yield in place

of certified yield.

• Simple Average times 90% is compared

to CC Yield.


Basic Comparison

PLC ARC-CO ARC-IC

Uses Price plus PLC

Yield

Uses Price Plus

“County” Level Yield

Uses Price Plus

Producer’s yield on

the farm(s)

Payment determined

by individual covered

commodity crop

base acres

Payment determined

by individual covered

commodity crop

base acres

Payment determined

by all crops planted

of covered

commodities

combined on the

farm(s) in the State


Basic Comparison

PLC ARC-CO ARC-IC

Payments made on

85% of specific crop

base acres on farm

Payments made on

85% of specific crop

base acres on farm

Payments made on

65% of TOTAL base

acres on farm

Production report

NOT required

Production report

NOT required

Requires annual

Production report of

all covered

commodities planted


Basic Comparison

PLC ARC-CO ARC-IC

Planting of covered

commodities NOT

required

Planting of covered

commodities NOT

required

Planting of covered

commodities

REQUIRED

Elect by Covered

Commodity Base

Acres by farm

May mix ARC-CO and

PLC on same farm by

base crop

Elect by Covered

Commodity Base

Acres by farm

May mix ARC-CO and

PLC on same farm by

base crop

Elect on ALL

Covered

Commodities on the

farm

ARC-CO & PLC not

eligible on farm


Advance ARC/PLC Payments

• Advance Payments are NOT authorized

for the ARC-CO, ARC-IC or PLC

programs


Final ARC/PLC Payments

• Final ARC/PLC payments will be made

to eligible producers on or after:

–October 1 of the following year of the

crop year once the Marketing Year

Average (MYA) price has been determined

for all crops


Signature Requirements

An owner will sign to the updating of

bases and yields

All current producers on the farm will

determine the program election.


General Signature Requirements

• Follow handbook 1-CM for policy

regarding producer signature requirements

on forms and/or contracts

• FSA-211’s (Power Of Attorney) forms:

– existing FSA-211’s on file remain valid for the

ARCPLC program IF the following box is

marked on the FSA-211form:


Contract Requirements

• ARC-CO and PLC, producers are required to

designate shares and sign a contract for farms

enrolled (similar to DCP under 2008 farm bill)

• ARC-IC, producers sharing in covered

commodities on farm enrolled are required to

sign a contract

– payment shares will be determined by using the

producer shares of all covered commodities

certified (FSA-578) on the ARC-IC enrolled farm


Change in Farming Interest or Base Acres

• A change in the interest of any producer or

change in any base acres on a contract in

the FY shall result in canceling the contract

for that FY

– succession to the contract can assume the

conditions of the contract no later than

September 30 of the applicable crop year for

changes in interest on the farm


Compliance Issues

Producers will be required to:

• Provide an accurate acreage report

• Control Weeds and Erosion

• Fruit and Vegetable (FAV) restrictions

FSA 2014 Farm Bill Training ARC-PLC Basic Provisions 28

Assignments & Joint Payments

• Upon the enactment of the 2014

Agriculture Act, CCC-36 (Assignment of

Payments) form can be submitted for new

programs. Item 8 of the form can be used

to list the programs, Item 9 will be the year.


ARC/PLC Program Flow

Producers will:

• Verify accuracy of acreage history reporting

• Determine to update yields

• Determine to re-allocate bases or keep

current bases

• Make program election decision

• Enroll in the program each year


ARC-PLC WEB Site

• Access the ARC-PLC information at:

http://www.fsa.usda.gov/FSA/

http://www.fsa.usda.gov/FSA/webapp?ar

ea=home&subject=arpl&topic=landing


http://www.fsa.usda.gov/FSA/

Non-insured Disaster Assistance

Program

• Eligible Crops – commercially produced

ag commodity not covered by crop

insurance

• Eligible Producers – shares in the risk

of the production

• Eligible Cause of Loss – Natural

disasters

FSA 2014 Farm Bill Training NAP Provisions 32


Progam

• Coverage levels – Basic Provisions – 50%

of expected production at 55% of average

market price (Service fee only)

• Additional Coverages allowed – 50%,

55%, 60%, 65% of production coverage at

100 percent of the average market price.

(Premium paid in addition to a service fee)

EXCEPTION: Not allowed for grazing

FSA 2014 Farm Bill TrainingNAP Provisions

33


Program

• Applying for Coverage – by application

closing date.

• Service Fee - $250 per crop, or $750 per

producer per administrative county not to

exceed $1875 for a producer with multi-

county interest

• Premium – Share X Acres X Yield X

Coverage Level X average market price X

5.25% (Maximum premium $6562.50)



Program

• Producers – beginning farmer, limited resource and traditionally underserved farmer are eligible for waiver of service fee and 50% premium reduction.

• Coverage Period – Later of 30 days after fees paid or crop planted.

• Must file an accurate acreage report

• Payments – notice of loss and application for payment.

• Payment Limitation - $125,000


Livestock Disaster Programs

• Livestock Forage Program (LFP)

• Livestock Indemnity Program (LIP)

• Emergency Assistance for Livestock,

Honey Bees, and Farm Raised Fish

Program (ELAP)

FSA 2014 Farm Bill Training Livestock Programs 36

Livestock Forage Program

• LFP applies on:

– grass loss due to drought on private lands

– fires on Federal lands

• Eligibility – must have eligible livestock

and eligible grass acres that was reported

for grazing

• Payments based on National Factors

comparing carrying capacity of grass type

and feed needs for eligible livestock.

FSA 2014 Farm Bill Training LFP Provisions 37

Livestock Indemnity Program

• Eligibility - must be eligible livestock

that were lost due to an eligible adverse

weather event

• Eligible livestock Owner – owned on

the date of death

• Payments are determined by National

rates and paid after normal mortality

FSA 2014 Farm Bill Training LIP Provisions 38

Emergency Assistance for Livestock,

Honey Bees and Farm Raised Fish

Program (ELAP)

• Eligibility – paid on losses not covered

by LFP or LIP

• Mainly honey bee loses

• Grazing losses on private land due to

fire (if due to a natural disaster event)

• Payments - $20 Million per fiscal year

nationally. Are factored if applications

exceed the total budgeted.

FSA 2014 Farm Bill Training ELAP provisions 39

Resourceful Farmers

40

Contact Information

Kansas State FSA Office – Manhattan,

KS

Phone: 785-564-4773

E-mail: [email protected]


QUESTIONS


Business

2014 Farm Bill Programs