Ag Decision Maker website updates for January 2015

January 23rd, 2015

Ag Decision Maker

Business Solutions for Farms and Agribusiness from Iowa State University Extension and Outreach

January Newsletter (pdf)

New and Updated Files


Iowa Farm Outlook

Outlook Information for Crops and Livestock

January Newsletter (pdf)

LivestockMonitoring Farrowings and Farrowing Intentions in USDA’s Hogs and Pigs Reports
Crops Looking Back, Looking Forward


Ag Decision Maker (AgDM) 

An agricultural economics and business website.

Other

2014 Farm Bill: Noninsured Crop Disaster Assistance Program

January 13th, 2015

Contributed by Kristen SchulteFarm Business Management Specialist, Iowa State University Extension and Outreach, kschulte@iastate.edu, 563-547-3001

schultek_finalThe 2014 Farm Bill extended the Noninsured Crop Disaster Assistance Program (NAP), and the program expanded its coverage by allowing producers to purchase additional coverage. Producers have the opportunity to make this change for policies set for the 2015 crop year until January 15th, 2015.

What does NAP cover?

  • Crops (not livestock) that are commercially produced for food and fiber for which catastrophic coverage under Federal Crop Insurance is not available.
  • Losses due to damaging weather (drought, hurricane, freeze, etc.), adverse natural occurrences (volcanic eruption, flood, etc), and other adverse natural occurrences (ex. excessive heat, insect infestation, ect.).

Signing up for NAP?

  • Producers must apply by application closing date; application is completed with form CCC-471. Application closing dates may vary by crop.
  • To be eligible for NAP, producers must report crop type and variety, location of acres, producers and related shares of crop, growing practice, crop planting date, and intended use of crop commodity. After planting or harvest, producers must also report acres planted, quantity of harvest, and disposition of crop. Production records may be required by FSA.
  • Application must also include service fee. Service fee is $250 per crop or $750 per producer per administrative county. Premiums are also due if electing buy-up coverage.
  • Beginning, limited resource, and traditional underserved farmers are eligible for a waiver of the service fee and 50% premium reduction (file form CCC-860).

What are the NAP coverage levels?

  • Catastrophic Coverage (CAT) covers losses greater than 50 percent at 55 percent of the commodity price.
  • Additional coverage, with premium, is available from 50 to 65 percent in 5 percent increments for production loss at 100 percent of average market price.
  • Premiums for additional coverage is equivalent to 5.25 percent of calculated crop covered value (accounts for share of crop, eligible acres, approved yield, coverage level, and average market price)

Crop losses and NAP?

  • When a loss occurs, notify the FSA office within 15 days of the natural disaster occurrence, prevented planting due to natural influences, date damage is apparent, or normal harvest date (whichever date comes first).
  • For hand-harvested crops that require a timely assessment of loss before deterioration, notify FSA of losses within 72 hours for certain crops.
  • Losses must be verified by the producer by completing form CCC-576, additional documentation/evidence may apply.
  • Average market values are used. At the state level, FSA may set separate market prices for a crop based on represented farming practices or sales to different markets within the state.
  • Retroactive pay for 2012 NAP assistance is available for losses to fruit crops (trees or bushes) in counties that had Secretarial disaster designations due to frost or freeze are available.

Additional Information

  • Grazed acres can only participate in NAP at the CAT level; however, these acres can only participate in either NAP or Livestock Forage Disaster Assistance Program
  • Annually, payments are limited to $125,000 per individual or entity.
  • Additional information can be found at fsa.usda.gov/nap.
  • A decision tool is available through FSA and collaborating universities, http://fsa.usapas.com/

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Crop Insurance, Government Programs , ,

Ag Decision Maker website updates for December 2014

December 19th, 2014

Ag Decision Maker

Business Solutions for Farms and Agribusiness from Iowa State University Extension and Outreach

December Newsletter (pdf)

New and Updated Files


Iowa Farm Outlook

Outlook Information for Crops and Livestock

December Newsletter (pdf)

LivestockWhat Do Beef Sector Relative Prices Suggest for Industry Participants?
CropsThe Light at the End of the Tunnel


Choices – The Magazine of Food, Farm, and Resource Issues

A Publication of AAEA, Agricultural & Applied Economics Association


CARD Agricultural Policy Review

Center For Agricultural and Rural Development


 

Ag Decision Maker (AgDM) 

An agricultural economics and business website.

Other

A Quiet Report

December 10th, 2014

Chad Hart, ISU Extension Grain Marketing Economist, provides a summary of the latest USDA report.

Hart_Chad-thumbThere were very few changes in this month’s USDA report. As is typical in December, the supply side estimates were left unchanged from the November numbers. And the demand changes were minor, but in a positive direction. Corn use for sweeteners was increased 10 million bushels. That was enough to lower 2014/15 ending stocks to just below the 2 billion bushel mark. For soybeans, exports continue to lead the demand charge. Soybean exports were raised 40 million bushels, to a record 1.76 billion. That reduced soybean ending stocks to 410 million bushels. However, for both crops, the midpoints of the season-average price ranges remained at last month’s levels, $3.50 for corn and $10 for soybeans. It was a quiet report for the holiday season.

Ag Decision Maker (AgDM) 

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Crop Outlook

Land Value Survey News Conference to be Held Dec. 18

December 5th, 2014

A news conference will be held at 10 a.m. on Dec. 18 announcing the results of the 2014 Iowa Land Value Survey conducted by the Center for Agricultural and Rural Development at Iowa State University. This year, the conference will take place in Room 004 of the Scheman building on the ISU campus in Ames.

Michael Duffy, a retired ISU Extension economist who is helping transition responsibility for conducting the survey from ISU Extension to CARD, will head the news conference and announce the latest findings. Background materials will be available at the conference, and will include Iowa land value data from 1950 to present, current land value data from all 99 counties, and a press release summarizing the 2014 survey results. Duffy will make himself available to reporters for follow-up questions or one-on-one interviews immediately following the presentation of results.

For those who can’t attend, the conference will be videotaped, and the video and printed materials from the conference will be made available on the CARD homepage at http://www.card.iastate.edu soon after the conference. Survey information from past years are also available.

The Scheman building is located next to Hilton Coliseum and Fisher Theater. Maps and directions to Scheman are available at http://bit.ly/LVSDirections. Free parking is available in the Scheman and Hilton lots.

 

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Land

ISU Extension Farm Bill – Program Overview Meetings

October 17th, 2014

Iowa farmers and landowners will learn about the new programs authorized by the Agricultural Act of 2014 (commonly referred to as the Farm Bill) at informational meetings conducted by Iowa State University Extension and Outreach and local USDA Farm Service Agency staff members. Meetings will be held across the state to explain options available under the new Farm Bill.

Farm Bill – Program Overview meetings will focus on the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) that will be administered by USDA Farm Service Agency, and the Supplemental Coverage Option (SCO) administered by USDA Risk Management Agency through federal crop insurance providers.

“Extension farm management specialists are prepared to discuss decisions farmers and landowners need to make in the coming months regarding Price Loss Coverage, and Agricultural Risk Coverage Individual and County options,” said Chad Hart, ISU Extension and Outreach economist and program coordinator. “Local FSA staff members who administer the programs will be available to answer questions.”

The timeline for when decisions need to be made along with information about online Farm Bill decision tools also will be shared at the meetings. Topics that will be covered during the meetings include:

  • Base reallocation
  • Yield updating
  • Price Loss Coverage (PLC)
  • Ag Risk Coverage (ARC)
  • Implications of PLC and ARC on participation in the Supplemental Coverage Option (SCO)
  • Dairy Margin Protection Program (MPP)
  • Noninsured Crop Disaster Assistance Program (NAP)

Locate a Farm Bill – Program Overview meeting
Farm Bill meetings for upcoming months continue to be added to the ISU Extension and Outreach Statewide Calendar. For the most current listing of meeting locations and dates visit the Ag Decision Maker Farm Bill website at www.extension.iastate.edu/agdm/info/farmbill.html or contact your county extension office.

The Ag Decision Maker Farm Bill website also contains useful links and resources related to Farm Bill decision making. Contact a county extension office for additional details about upcoming local meetings.

PHOTO:
Steve Johnson, farm management specialist, and Chad Hard, extension economist, visited with 2014 Farm Progress Show visitors about  the farm bill.

Ag Decision Maker (AgDM) 

An agricultural economics and business website.

Government Programs

Ag Decision Maker website updates for October 2014

October 15th, 2014

Ag Decision Maker

Business Solutions for Farms and Agribusiness from Iowa State University Extension and Outreach

October Newsletter (pdf)

New and Updated Files


Iowa Farm Outlook

Outlook Information for Crops and Livestock

October Newsletter (pdf)

LivestockAn Update on Herd Rebuilding and Hog and Pig Inventories
Crops As the Combines Start to Roll


Choices – The Magazine of Food, Farm, and Resource Issues

A Publication of AAEA, Agricultural & Applied Economics Association

Ag Decision Maker (AgDM) 

An agricultural economics and business website.

Other

Acreage Reduced, But Yields Offset

October 10th, 2014

Acreage Reduced, But Yields Offset (10/10/14)

Chad Hart, ISU Extension Grain Marketing Economist, provides a summary of the latest USDA report.

Hart_Chad-thumbOver the past couple of months, there had been significant discussion of crop acreage numbers and whether the NASS estimates would be adjusted downward. That adjustment occurred in the most recent reports. For corn, planted and harvested area were reduced by 700,000 acres. A similar downward adjustment took place for soybeans. But in both cases, the acreage losses were offset by higher yields so that total production continued to climb. The national average corn yield was raised 2.5 bushels to 174.2 bushels per acre. The corn yield estimates were raised in 22 states. And 22 states are projected to set state records as well. Illinois is projected at 200 bushels per acre. The jump in soybean yields isn’t quite as dramatic, but the end result is the same, larger production. The national average is projected at 47.1 bushels per acre, up 0.5 bushels. 13 states are expected to have record yields.

Putting it all together, USDA estimates a 14.475 billion bushel corn crop and a 3.927 billion bushel soybean crop. Both, by far, the largest crops the country has ever produced. In comparison, the demand projections were little changed. Corn feed and residual use was increased by 50 million bushels. That was the only shift in projected demand for the 2014 crops. Estimates for the 2014/15 market year average prices dropped 10 cents for corn to a midpoint of $3.40 per bushel. For soybeans, the price estimates held steady, with a midpoint of $10 per bushel.

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Crop Outlook

2013 ACRE revenue shortfall triggers corn payment

October 8th, 2014

Contributed by Steven D. JohnsonFarm Management Specialist, Iowa State University Extension, sdjohns@iastate.edu, 515-957-5790

Johnson_Steve_smThe Average Crop Revenue Election (ACRE), a counter-cyclical program created in the 2008 farm bill has had limited participation by Iowa producers. In addition to the Direct & Counter-Cyclical Payment (DCP) programs, a producer could also enroll by FSA farm number in this new ACRE program. There was a cost of participation, as a producer was required to give up 20% of their Direct Payment (DP) annually.

The ACRE program used a combination of state average yields, farm level yields and the national marketing year average (MYA) national cash price to determine levels of revenue guarantees and payments for each covered commodity on a farm enrolled. There were two revenue triggers that had to be met annually before any ACRE payments were generated, one at the state level and one at the farm level.

The price component of both of the state and farm level triggers is the average of the two most recent USDA marketing year prices. The marketing year runs from September through August each year and uses a weighted average to determine the national cash price. The marketing year average (MYA) national cash prices for the 2011 and 2012 crops were $6.22 and $6.89 per bushel, respectively. The 2013 MYA national cash price of $4.46 per bushel was released on September 29, 2014.

2013 ACRE payment is approximately $45 per base acre for corn

To trigger a payment under ACRE the “actual” revenue for both the state and the farm must be less than their corresponding guarantees. The actual revenues are the current marketing year cash price multiplied by the state average yield and the actual farm level yield, respectively. If both triggers are reached, the payment to the farm will be the difference between the state revenue guarantee and the state actual revenue.

The payment level cannot exceed 25% of the state guarantee, however. It will also be adjusted up or down by the ratio of the farm Olympic average yield to the state Olympic average yield. For example, if the farm average yield is 10% above the state average yield, the ACRE payment will be increased by 10% for that farm. Because of this 10% limit, the state revenue guarantee for 2013 was $781. The actual state revenue was approximately $736 per acre or 165 bushel per acre state corn yield times $4.46 per bushel national cash price in 2013. This leaves a shortfall in revenue of approximately $45 per base acre of corn.

The 2013 ACRE payment was made on 85% of the farm’s base acres. However, the total planted acres that receive a payment cannot exceed the total base acres for all crops established for the counter-cyclical payments. Producers who signed up for the 2013 ACRE program did receive 80% of the direct payments that have been paid in 2013, regardless of actual prices or yields each year.

Check with your local Farm Service Agency (FSA) Office

For those 6,000 Iowa farms enrolled in the 2013 ACRE program, they were required to submit 2013 actual farm’s yields to their local FSA office by mid-July. Those same farms will still need to meet both the farm and state triggers. That payment to the farm will be the difference between the state revenue guarantee and the state actual revenue, which appears likely for corn for the 2013 crop. Since the MYA national cash price was not known until September 29, 2014, the ACRE payment is not made until October 2014. Payments to those farms enrolled and appropriate yield information is expected to be made by FSA after October 10, 2014.

Using the ACRE Payment Estimator

Iowa State University Extension created an Average Crop Revenue Election (ACRE) Payment Estimator, an online tool, in 2008 to assist producers as they determined if they should enroll in the ACRE program. The calculator has since been updated. You can use this same calculator now to estimate the potential 2013 ACRE payment for your farm, which appears likely for corn base acres. You can find an Information File and Decision Tool titled Average Crop Revenue (ACRE) on the Ag Decision Maker website.

For information related to the 2014 Farm Bill, visit the Ag Decision Maker Farm Bill webpage.

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USDA Farm Service Agency Announces Key Dates for New 2014 Farm Bill Safety Net Programs

October 3rd, 2014
Farmers can Update Yield History and/or Reallocate Base Acres through Feb. 27, 2015;
Producers Select the Safety Net Program Best for Their Operation Beginning Nov. 17, 2014 through March 31, 2015

 

WASHINGTON, Oct. 2, 2014 – The U.S. Department of Agriculture (USDA) is announcing key dates for farm owners and producers to keep in mind regarding the new 2014 Farm Bill established programs, Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). The new programs, designed to help producers better manage risk, usher in one of the most significant reforms to U.S. farm programs in decades.

 

“The ARC and PLC programs are a significant reform in the farm safety net,” said Farm Service Agency (FSA) Administrator Val Dolcini. “FSA wants to keep producers well informed on all steps in the process. We will continue our outreach efforts and maintain resources online to help them understand the new programs before they come in to make decisions for their operations.”

 

Dates associated with ARC and PLC that farm owners and producers need to know:
  • 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 or PLC for the 2014 through 2018 crop years.
  • Mid-April 2015 through summer 2015: Producers sign contracts for 2014 and 2015 crop years.
  • October 2015: Payments for 2014 crop year, if needed.
USDA leaders will visit with producers across the country to share information and answer questions on the ARC and PLC programs.

 

USDA helped create online tools to assist in the decision process, allowing farm owners and producers to enter information about their operation and see projections that show what ARC and/or PLC will mean for them under possible future scenarios. The new tools are now available at www.fsa.usda.gov/arc-plc. Farm owners and producers can access the online resources from the convenience of their home computer or mobile device at any time. USDA provided $3 million to the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri and the Agricultural and Food Policy Center (AFPC) at Texas A&M (co-leads for the National Association of Agricultural and Food Policy), along with the University of Illinois (lead for the National Coalition for Producer Education) to develop these online tools.

 

Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (which includes short grain rice), safflower seed, sesame, soybeans, sunflower seed and wheat. Upland cotton is no longer a covered commodity.

Today’s announcement was made possible through the 2014 Farm Bill, which builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for the taxpayer. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life in rural America. For more information, visit www.usda.gov/farmbill.

Sept. 29, 2014 to Feb. 27, 2015
Nov. 17, 2014 to March 31, 2015
Mid-April through Summer 2015
October 2015
Land owners make base reallocation/yield updates
Producers make election between ARC/PLC
Producers sign contracts for 2014 and 2015 crop years
Payments for 2014 crop year, if needed

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