Terry Hawk, USDA-Farm Service Agency - Presentation at the 2015 Women Managing the Farm Conference

1. 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

2. 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

3. 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

4. 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

5. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 5

6. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 6

7. 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.
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 7

8. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 8

9. 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”
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 9

10. Covered Commodities
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 10
– Listing of the 21 Covered Commodities
– Listing specifies eligible “TYPE” and
eligible “INTENDED USES”

11. Covered Commodities
FSA 2014 Farm Bill Training Program Name Here 11

12. Covered Commodities
FSA 2014 Farm Bill Training Program Name Here 12

13. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 13

14. 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
FSA 2014 Farm Bill Training Program Name Here 14

15. 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)
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 15

16. 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)
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 16

17. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 17

18. 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.
FSA 2014 Farm Bill Training Program Name Here 18

19. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 19

20. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 20

21. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 21

22. Advance ARC/PLC Payments
• Advance Payments are NOT authorized
for the ARC-CO, ARC-IC or PLC
programs
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 22

23. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 23

24. Signature Requirements
An owner will sign to the updating of
bases and yields
All current producers on the farm will
determine the program election.
FSA 2014 Farm Bill Training Program Name Here 24

25. 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:
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 25

26. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 26

27. 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
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 27

28. 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

29. 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.
FSA 2014 Farm Bill Training ARC/PLC Basic Provisions 29

30. 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
FSA 2014 Farm Bill Training ARC-PLC Basic Provisions 30

31. 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
FSA 2014 Farm Bill Training ARC-PLC Basic Provisions 31

32. 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

33. Non-insured Disaster Assistance
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 Training
NAP Provisions
33

34. Non-insured Disaster Assistance
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)
FSA 2014 Farm Bill Training NAP Provisions 34

35. Non-insured Disaster Assistance
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
FSA 2014 Farm Bill Training NAP Provisions 35

36. 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

37. 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

38. 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

39. 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

40. Resourceful Farmers
40

41. Contact Information
Kansas State FSA Office – Manhattan,
KS
Phone: 785-564-4773
E-mail: terry.hawk@ks.usda.gov
FSA 2014 Farm Bill Training 41

42. QUESTIONS
FSA 2014 Farm Bill Training 42