Farm Bill Overview.

Transcription

1 Farm Bill Overview Williamson Insurance Agency and it s agents are not authorized to advise which FSA program a producer should enroll. The purpose of this overview is to provide additional information to help educate producers on some of the details of the farm bill. It is the responsibility of the producer to make this decision. This is an overview and is not meant to replace the 2014 FARM BILL. Williamson Insurance is an Equal Opportunity Provider

2 BEFORE YOU BEGIN AGI Means Testing - $900,000 3 year average of AGI. If over that, you are not eligible for program Payment Limits Depends on Entity type o Overall $125,000 per individual ($250,000 if married) on total commodity policy benefits (sum of ARC, PLC, MLG & LDP) o An LLC would have a $125,000 limit as well as each SSN under that corporate structure would have a $125K limit for all their farm operations. o A Joint Partnership would NOT have an overall limit (like an LLC), but $125K per each individual

3 BEFORE YOU BEGIN Who Makes the Decisions? Option to Reallocate Base Acres & Update Yields The OWNER of the farm will have the option to update base information with FSA. Option to Elect between PLC and ARC The PRODUCER will have the power to make this decision. (Producer has typically been defined as the person who is at risk in the operation. Cash rent = operator; share rent = landowner & tenant) ***The election must be unanimous between all parties at risk on that farm.

4 FIRST STEP Compare your Base Acres vs. your FSA Reported Commodity Crop History Summary Option to reallocate base acres to reflect the 4 year average ( crop years) of planted acres *** INCLUDING Prevent Plant acres Base reallocation may NOT exceed current total base acres for a farm

5 FIRST STEP Compare your Base Acres vs. your FSA Reported Commodity Crop History Summary Take the form you received in late July to the FSA (make sure the acres are accurate) Go to your FSA office to see what your potential Base Reallocation Acres could be

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8 SECOND STEP Compare your current Base Yield to your potential updated yield Can choose by farm (FSN) and by commodity to update FSA Yields for program crops you have base on. IMPORTANT You can update to 90% of the average yield from , excluding years you did not plant that crop Yield Plug of 75% of County average yield during

9 SECOND STEP Compare your current Base Yield to your potential updated yield Get production history from your Crop Insurance Agent check them for accuracy Compare your Base Yield to actual yields.

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12 THIRD STEP Repeat the process for each FSN REMEMBER You can choose to update yields by Farm (FSN) and by commodity for program crop you have base on. REFERENCE your Reported Commodity Crop History Summary, and use your production history (crop insurance history) for each Farm. You can update to 90% of the average yield from , excluding years you did not plant that crop

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14 FOURTH STEP Compare PLC vs ARC by FSN by Crop PRICE LOSS COVERAGE (PLC) Similar to current CCP program Updated target prices (now called reference prices) Support is triggered based SOLELY on price Able to purchase Supplemental Coverage Option thru Crop Insurance Agent

15 FOURTH STEP Compare PLC vs ARC by FSN by Crop AGRICULTURAL RISK COVERAGE (ARC) Similar to ACRE program Choice of either on Farm or County ARC Benchmark Revenue is based on the 5 year Olympic Average of Price x Yield Support triggered when revenue dips below 86% of Benchmark Revenue NOT Eligible for SCO

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19 FOURTH STEP Compare PLC vs ARC by FSN by Crop Make Choice of either PLC or ARC by Farm (FSN) and commodity BEFORE MARCH 31, 2015 If you DO NOT choose between PLC or ARC by March 31, 2015 you WILL automatically be enrolled in PLC starting with the 2015 Crop Year.

20 REFERENCE MATERIAL A good place to follow the Market Year Average (MYA) Price - (Dr. Art Barnaby from Kansas State University) Download a simple EASY TO USE comparison Tool and for specific excel spreadsheet page go to on=fast

21 Williamson Insurance is an Equal Opportunity Provider