The North Dakota Farmers Union held a presentation on the 2014 Farm Bill enacted by Congress for local farmers at the NDSU Research Center located in Langdon last Tuesday.
Posted on 10/11/14
By Melissa Anderson
The presentation had speakers from the North Dakota Farm Service Agency (NDFSA) and NDSU Extension Service.
“There are some major changes that happened in this farm bill that we are trying to get out to the public so they understand” Aaron Krauter, the State Execituve Director of the North Dakota Farm Service Agency, said.
The biggest change to the new farm bill is the payments that have been eliminated: Direct Payments, Counter-Cyclical payments, and ACRE Payments.
The Counter-Cyclical Payments and ACRE Payments have been replaced by new programs. It should be noted that once a farmer/landowner signs up for these programs they are locked in it for the life ( 5 years) of the 2014 Farm Bill.
There are three new programs under the 2014 Farm Bill, they are the Price Loss Coverage (PLC), Agricultural Risk Coverage-County (ARC-CO), and Agricultural Risk Coverage-Individual (ARC-IC).
To implement these programs to their fullest potential, it is recommended that farmers update their base acres and yields.
The NDFSA sent out letters containing the acreage history in August of 2014. It is highly recommended that land owners review these letters and make any necessary corrections and updates.
The base and yield updates must be made by the current owners of the farm. This is a one time opportunity under the new 2014 Farm Bill to reallocate base acres and update either counter-cyclical yields or updated yield.
Landowners can reallocate current base to the average planted and prevented planted acres in 2009-2012. An owner can update base yields to 90 percent of the average 2008-2012 yields.
The presenters stressed the importance of landowners who rent to work together with their renters in order for accurate information to be provided to FSA.
The PLC program is a price loss program. Under this program a farmer can go by a crop by crop on the farm. With this program a farmer is allowed to mix and match with ARC-CO. The PLC program does not require the farmer to plant the base crop.
The ARC-CO is a revenue loss program at the county level. This program takes the average yield across a county and makes payments based on that. This program allows a farmer to plant crop-by-crop. A farmer can choose ARC-CO for some crops and PLC for other crops. This program does not require farmers to plant base crops.
The ARC–IC is a revenue loss program at the individual producer/farm level. Under this program multiple farms electing the farm option are combined. This program requires the planting of the covered crop to be eligible. This program also does not allow for mixing with the PLC program.
Payment acres for both PLC and ARC-CO are found using the base acres, not planted acres. Both PLC and ARC-CO payments are found by using 85 percent.
The ARC-IC program has the payments based on actual planted acres not the total base acres. The formula used also has a lower percentage, 65 percent, versus the PLC and ARC-CO. Those who enlist in this program must also submit paperwork eventually to prove yield.
The payment time line for these programs utilize national marketing year prices. This means that payments likely won’t be made until October the year after harvest with some payments not being made until December for certain crops. Because of this there will not be any payments in 2014.
This farm bill also included Supplemental Agricultural Disaster Assistance. This includes Livestock Indemnity Program (LIP), Livestock Forage Program (LFP), emergency assistance (ELAP) for livestock, honeybees, and farm raised fish.
Deadlines to be aware of:
•Sept. 29, 2014 to Feb. 27, 2015: Land owners may visit their local Farm Service Agency office to update yield history and/or reallocate base acres.
• Nov. 17, 2014 to March 31, 2015: Producers make a one-time election of either ARC program or the PLC program for the 2014 through 2018 crop years.
This article is a highly condensed version of the presentation that was given. For more information concerning the 2014 Farm Bill and how it may affect you, please contact Cavalier County NDSU Extension AgentRon Beneda at 701-256-2560 or visit the following websites: