Farm Bill Meeting Bollinger County

Transcription

1 Farm Bill Meeting Bollinger County David Reinbott Agriculture Business Specialist P.O. Box 187 Benton, MO (573)

2 1. Attend Another Meeting December 10 Corn Meeting 8:30 a.m. 3:00 p.m. Farm Bill topics after lunch, Miner Conv. Ct. January 14 Soybean Meeting 8:30 a.m. 3:00 p.m. Farm Bill topics after lunch, Miner Conv. Ct. February Cotton Meeting (Fisher Delta Research Center) & Rice Meeting (Dexter Eagles) with Farm Bill Topics in the afternoon December 3 Water Melon Producers Meeting at Kennett American Legion Farm Bill topic

3 Upcoming FSA/Extension Meetings November 25 9:00 a.m. Noon, Delta Growers, Miss. Co. December 2 10:00 a.m. Noon, Perryville December 4 9:00 a.m. Noon, Holiday Inn, Poplar Bluff December 8 7:00 9:00 p.m., Woodland School, Marble Hill December 15 7:00 9:00 p.m., Extension Office, Jackson December 16-9:00 a.m. Noon, Delta Growers, Miss. Co.

4 2. Farm Bill Web Sites 2014 Farm Bill Web Site : Or type David Reinbott in Google, at my Web Site click 2014 Farm Bill link University FSA and USDA FAPRI Monthly Farm Price Crop Update Risk Management Agency (RMA) University and FSA - Tools and Calculators Dates of upcoming Farm Bill Meetings

5 3. Review your FSA letter Current base acres Current payment yields (CC yields) Historical planted acres Yield update (08-12) Base reallocation (09-12)

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10 Marketing Year Average Price Calculations - % Corn Year to Date Soybeans Year to Date Milo Year to Date Sept Oct Nov Dec Jan Feb March Apr - Aug

11 Marketing Year Average Price Calculations - % Year to Wheat Date June 13.0 July Aug Sept Oct Nov Dec Jan Feb March Apr - Aug 8.7

12 Price Loss Coverage (PLC) Payment is made if Marketing Year average Price is less than the Reference Price Marketing Year Average Price is the weighted average price received by farmers for their crops sold during the marketing year as calculated by NASS.

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15 PLC Reference Prices Crop Reference Price Payment Price Nov Rate Corn $3.70 $3.50 $0.20 Soybeans $8.40 $10.00 $0.00 Grain Sorghum $3.95 $3.45 $0.50 Wheat $5.50 $5.90 $0.00 Rice (LG) $6.30 $5.72 $0.58

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17 FAPRI Price Projections (11/18) Corn Soybeans Wheat Sorghum Rice (LG) Cotton

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21 Supplemental Coverage Option (SCO) Crop insurance program (RMA administered) New crop insurance option available for 2015 crop year To be eligible a covered commodity cannot be enrolled in ARC or cotton acres can not be covered by STAX Provides additional coverage on top of your underlying insurance policy You must have an underlying insurance policy (Yield Protection, Revenue Protection, or Revenue Protection with the Harvest Price Exclusion) SCO follows the coverage of your underlying policy If your underlying policy covers yield loss SCO covers yield loss If your underlying policy covers revenue loss SCO covers revenue loss Coverage starts where the underlying insurance policy ends and covers to a maximum of 86%

22 Supplemental Coverage Option (SCO) Federal Government pays 65% of premium cost Premium depends on the crop, county, coverage level, and type of coverage chosen for the underlying policy Payment trigger is different than on the underlying policy For SCO, an indemnity is triggered when there is a county level loss in yield or revenue Available in select counties for the 2015 crop year for corn, soybeans, wheat, sorghum, cotton, and rice SCO payments will occur later than payments received for the underlying policy In 2016 additional crops, areas, and production methods (irrigated v. non-irrigated) will be included in SCO coverage

23 SCO Coverage Overview

24 Generic base decisions Former cotton base is now generic base, which cannot be changed If producers with generic base plant other crops, will get payments for those crops This is an exception to rule that what producers plant doesn t affect ARC-CO or PLC payments Example: 2000 acre farm with 1000 acres generic base, 1000 soybean base acres If plant 1000 acres each of cotton and soybeans, get soybean payments on all 2000 acres If plant 1000 acres of soybeans and 1000 acres of corn, get soybean payments on 1500, corn on 500 If plant 1000 acres of soybeans and idle the rest, get soybean payments on all 2000 acres

25 USDA Announces Changes to Fruit and Vegetable Planting Rules Producers who intend to participate ARC/PLC programs are subject to an acre-for-acre payment reduction when fruits, nuts, & vegetables are planted on the payment acres of a farm. Planting fruits and vegetables on acres that are not considered payment acres will not result in a payment reduction. Example 1: 10 acre farm with 10 acres of Corn Base. If 3 acres of melons are planted, a 3 acre payment reduction. Example 2: 20 acre farm with 10 acres of Corn Base. If 3 acres of melons are planted, zero acres of payment reduction because melons are not planted on payment acres.

26 ARC and PLC Program Payments Corn Bollinger County PLC Referrence Price $3.70 PLC payment Yield Calculation for ARC and PLC Payment Check if Irrigated 5-Year 5-Year Bollinger Market ARC Olympic Olympic Bench ARC ARC ARC PLC County Year Avg Price Average Average Mark Revenue Actual Calculated Calculated Year Yield Price Yield Price Revenue Guarantee Revenue Payment Payment $3.55 $ $5.18 $ $6.22 $ $6.89 $ $4.45 $ $3.50 $ $5.28 $558 $480 $494 $0 $ $3.89 $ $5.28 $565 $486 $427 $48 $ $4.02 $ $4.85 $535 $460 $447 $11 $ $4.10 $ $4.12 $483 $416 $462 $0 $ $4.10 $ $4.00 $474 $407 $468 $0 $0 Five Year Average Payment $12 $4

27 ARC and PLC Program Payments Corn Bollinger County PLC Referrence Price $3.70 PLC payment Yield Calculation for ARC and PLC Payment Check if Irrigated 5-Year 5-Year Bollinger Market ARC Olympic Olympic Bench ARC ARC ARC PLC County Year Avg Price Average Average Mark Revenue Actual Calculated Calculated Year Yield Price Yield Price Revenue Guarantee Revenue Payment Payment $3.55 $ $5.18 $ $6.22 $ $6.89 $6.89 $3.50 price $4.45 $ $3.50 $ $5.28 $558 $480 $494 $0 $ $3.50 $ $5.28 $565 $486 $384 $48 $ $3.50 $ $4.79 $528 $454 $389 $45 $ $3.50 $ $3.95 $463 $398 $394 $3 $ $3.50 $ $3.70 $438 $376 $400 $0 $22 Five Year Average Payment $19 $22

28 ARC and PLC Program Payments Corn Bollinger PLC Referrence Price $ Calculation for ARC and PLC Payment Check if Irrigated 5-Year 5-Year Bollinger Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $3.55 $ $5.18 $ $6.22 $ $6.89 $ $4.45 $ $3.50 $ $5.28 $55 $ $3.89 $ $5.28 $76 $ $4.02 $ $4.85 $20 $ $4.10 $ $4.12 $0 $ $4.10 $ $4.00 $0 $0 Five Year Average Payment $30 $6

29 ARC and PLC Program Payments Corn PLC Referrence Price $ Check if Irrigated 5-Year 5-Year Bollinger Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $3.55 $ $5.18 $ $6.22 $ $6.89 $ $4.45 $4.45 Bollinger Calculation for ARC and PLC Payment $3.40 price $3.50 $ $5.28 $55 $ $3.40 $ $5.28 $76 $ $3.40 $ $4.79 $69 $ $3.40 $ $3.95 $0 $ $3.40 $ $3.70 $0 $46 Five Year Average Payment $40 $43

30 ARC and PLC Program Payments Soybeans Check if Irrigated Bollinger PLC Referrence Price $ Calculation for ARC and PLC Payment 5-Year 5-Year Bollinger Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $9.59 $ $11.30 $ $12.50 $ $14.40 $ $13.00 $ $10.00 $ $12.27 $0 $ $9.10 $ $12.27 $21 $ $9.78 $ $11.83 $0 $ $10.08 $ $10.93 $0 $ $10.23 $ $9.95 $0 $0 Five Year Average Payment $4 $0

31 ARC and PLC Program Payments Soybeans Check if Irrigated Bollinger PLC Referrence Price $ Calculation for ARC and PLC Payment 5-Year 5-Year Bollinger Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $9.59 $ $11.30 $ $12.50 $ $14.40 $14.40 $7.50 price $13.00 $ $10.00 $ $12.27 $0 $ $7.50 $ $12.27 $31 $ $7.50 $ $11.83 $30 $ $7.50 $ $10.47 $29 $ $7.50 $ $8.93 $1 $24 Five Year Average Payment $18 $19

32 ARC and PLC Program Payments Soybeans Check if Irrigated Bollinger County PLC Referrence Price $8.40 PLC payment Yield 45.0 Calculation for ARC and PLC Payment 5-Year 5-Year Bollinger Market ARC Olympic Olympic Bench ARC ARC ARC PLC County Year Avg Price Average Average Mark Revenue Actual Calculated Calculated Year Yield Price Yield Price Revenue Guarantee Revenue Payment Payment $9.59 $ $11.30 $ $12.50 $ $14.40 $ $13.00 $ $10.00 $ $12.27 $597 $513 $460 $45 $ $9.10 $ $12.27 $581 $499 $461 $33 $ $9.78 $ $11.83 $560 $482 $500 $0 $ $10.08 $ $10.93 $523 $450 $521 $0 $ $10.23 $ $9.95 $490 $422 $534 $0 $0 Five Year Average Payment $16 $0

33 ARC and PLC Program Payments Soybeans Check if Irrigated Bollinger PLC Referrence Price $ Calculation for ARC and PLC Payment 5-Year 5-Year Bollinger Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $9.59 $ $11.30 $ $12.50 $ $14.40 $14.40 $7.50 price $13.00 $ $10.00 $ $12.27 $45 $ $7.50 $ $12.27 $49 $ $7.50 $ $11.83 $48 $ $7.50 $ $10.47 $37 $ $7.50 $ $8.93 $0 $34 Five Year Average Payment $36 $28

34 ARC and PLC Program Payments Wheat Bollinger PLC Referrence Price $ Calculation for ARC and PLC Payment Check if Irrigated 5-Year 5-Year Bollinger Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $4.87 $ $5.70 $ $7.24 $ $7.77 $ $6.87 $ $5.90 $ $6.60 $0 $ $5.36 $ $6.67 $27 $ $5.50 $ $6.67 $25 $ $5.70 $ $6.09 $0 $ $5.90 $ $5.70 $0 $0 Five Year Average Payment $10 $1

35 ARC and PLC Program Payments Wheat PLC Referrence Price $ Check if Irrigated 5-Year 5-Year Bollinger Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $4.87 $ $5.70 $ $7.24 $ $7.77 $ $6.87 $6.87 Bollinger Calculation for ARC and PLC Payment $5.00 price $5.90 $ $6.60 $0 $ $5.00 $ $6.67 $29 $ $5.00 $ $6.67 $30 $ $5.00 $ $6.09 $21 $ $5.00 $ $5.63 $1 $21 Five Year Average Payment $16 $17

36 ARC and PLC Program Payments Grain Sorghum Butler PLC Referrence Price $ Calculation for ARC and PLC Payment Check if Irrigated 5-Year 5-Year Butler Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $3.22 $ $5.02 $ $5.99 $ $6.33 $ $4.28 $ $3.41 $ $5.10 $12 $ $3.60 $ $5.10 $32 $ $3.75 $ $4.74 $8 $ $3.87 $ $4.06 $0 $ $3.91 $ $3.95 $0 $3 Five Year Average Payment $10 $19

37 ARC and PLC Program Payments Rice Butler PLC Referrence Price $ Calculation for ARC and PLC Payment Check if Irrigated 5-Year 5-Year Butler Market ARC Olympic Olympic ARC PLC County Year Avg Price Average Average Calculated Calculated Year Yield Price Yield Price Payment Payment $5.81 $ $4.95 $ $6.03 $ $6.48 $ $6.93 $ $5.66 $ $6.36 $0 $ $5.77 $ $6.36 $0 $ $5.89 $ $6.36 $0 $ $5.89 $ $6.36 $0 $ $5.91 $ $6.30 $0 $51 Five Year Average Payment $0 $62

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39 Acre/Year $40 $30 $12 ARC $3,574 PLC - $12,729; ARC-$11,310 PLC - $2,683 $13 PLC -$6,431

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44 Take Home Message Corn Leaning to ARC-Co Soybeans ARC-Co Wheat Leaning to PLC Milo - PLC Rice - PLC SCO Talk to your crop Ins. Agent if you take PLC Base and Yield very important for future payments Maximize Rice Base

45 Steps 6, 7 & 8 6. Review the spreadsheets, web based tools, calculators, and outputs 7. If you are interested in Supplemental Coverage Option (SCO), talk with your crop insurance agent 8. Visit the FSA office to submit paper work with your decisions

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49 $11.04 $2.63 $6.15

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51 $ per bushel Monthly Farm Price of Wheat in Illinois, January August 2012 and Projected Future Range $ $ $ $1.81 $3.24 $5.74

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