farm bill meeting mississippi county - university of...

Farm Bill Meeting Mississippi

County

David ReinbottAgriculture Business Specialist

P.O. Box 187

Benton, MO 63736

(573) 545-3516

http://extension.missouri.edu/scott/agriculture.aspx

reinbottd@missouri.edu

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

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.

2. Farm Bill Web Sites

• 2014 Farm Bill Web Site : http://extension.missouri.edu/scott/Farm-bill.aspx

–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

3. Review your FSA letter

• Current base acres

• Current payment yields

(CC yields)

• Historical planted acres

– Yield update (08-12)

– Base reallocation (09-12)

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.

FAPRI Price Projections (11/18)

2014 2105 2016 2017 2018

Corn 3.50 3.89 4.02 4.10 4.10

Soybeans 10.00 9.10 9.78 10.08 10.23

Wheat 5.90 5.36 5.50 5.70 5.90

Sorghum 3.41 3.6 3.75 3.87 3.91

Rice (LG) 5.66 5.77 5.89 5.89 5.91

Cotton 61.41 60.79 60.19 60.71 61.54

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

PLC Reference Prices

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%

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

SCO Coverage Overview

ARC and PLC Program PaymentsCorn County

PLC Referrence Price $3.70 PLC payment Yield 180.0

5-Year 5-Year

Mississippi 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

2009 172.0 $3.55 $3.70

2010 150.0 $5.18 $5.18

2011 120.0 $6.22 $6.22

2012 150.0 $6.89 $6.89

2013 190.0 $4.45 $4.45

2014 210.0 $3.50 $3.70 157.3 $5.28 $831 $715 $735 $0 $31

2015 161.3 $3.89 $3.89 163.3 $5.28 $863 $742 $628 $73 $0

2016 162.8 $4.02 $4.02 167.1 $4.85 $811 $697 $655 $36 $0

2017 164.3 $4.10 $4.10 171.4 $4.12 $706 $607 $674 $0 $0

2018 165.8 $4.10 $4.10 172.4 $4.00 $690 $594 $680 $0 $0

Five Year Average Payment $22 $6

Calculation for ARC and PLC Payment

Mississippi

Check if Irrigated

ARC and PLC Program PaymentsCorn

PLC Referrence Price $3.70 180.0

5-Year 5-Year

Mississippi Market ARC Olympic Olympic ARC PLC

County Year Avg Price Average Average Calculated Calculated

Year Yield Price Yield Price Payment Payment

2009 172.0 $3.55 $3.70

2010 150.0 $5.18 $5.18

2011 120.0 $6.22 $6.22

2012 150.0 $6.89 $6.89

2013 190.0 $4.45 $4.45

2014 210.0 $3.50 $3.70 157.3 $5.28 $0 $31

2015 161.3 $3.89 $3.89 163.3 $5.28 $73 $0

2016 162.8 $4.02 $4.02 167.1 $4.85 $36 $0

2017 164.3 $4.10 $4.10 171.4 $4.12 $0 $0

2018 165.8 $4.10 $4.10 172.4 $4.00 $0 $0

Five Year Average Payment $22 $6

Calculation for ARC and PLC Payment

Mississippi

Check if Irrigated

ARC and PLC Program PaymentsCorn County

PLC Referrence Price $3.70 PLC payment Yield 144.0

5-Year 5-Year

Mississippi 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

2009 162.0 $3.55 $3.70

2010 142.0 $5.18 $5.18

2011 111.0 $6.22 $6.22

2012 117.0 $6.89 $6.89

2013 160.0 $4.45 $4.45

2014 180.0 $3.50 $3.70 139.7 $5.28 $738 $635 $630 $4 $24

2015 143.7 $3.89 $3.89 139.7 $5.28 $738 $635 $559 $63 $0

2016 145.2 $4.02 $4.02 140.2 $4.85 $681 $585 $584 $1 $0

2017 146.7 $4.10 $4.10 149.6 $4.12 $616 $530 $601 $0 $0

2018 148.2 $4.10 $4.10 150.6 $4.00 $603 $519 $607 $0 $0

Five Year Average Payment $14 $5

Calculation for ARC and PLC Payment

Mississippi

Check if Irrigated

ARC and PLC Program PaymentsCorn

PLC Referrence Price $3.70 144.0

5-Year 5-Year

Mississippi Market ARC Olympic Olympic ARC PLC

County Year Avg Price Average Average Calculated Calculated

Year Yield Price Yield Price Payment Payment

2009 162.0 $3.55 $3.70

2010 142.0 $5.18 $5.18

2011 111.0 $6.22 $6.22

2012 117.0 $6.89 $6.89

2013 160.0 $4.45 $4.45

2014 180.0 $3.50 $3.70 139.7 $5.28 $4 $24

2015 143.7 $3.89 $3.89 139.7 $5.28 $63 $0

2016 145.2 $4.02 $4.02 140.2 $4.85 $1 $0

2017 146.7 $4.10 $4.10 149.6 $4.12 $0 $0

2018 148.2 $4.10 $4.10 150.6 $4.00 $0 $0

Five Year Average Payment $14 $5

Calculation for ARC and PLC Payment

Mississippi

Check if Irrigated

ARC and PLC Program PaymentsSoybeans

PLC Referrence Price $8.40 50.0

5-Year 5-Year

Mississippi Market ARC Olympic Olympic ARC PLC

County Year Avg Price Average Average Calculated Calculated

Year Yield Price Yield Price Payment Payment

2009 46.0 $9.59 $9.59

2010 43.0 $11.30 $11.30

2011 44.0 $12.50 $12.50

2012 41.0 $14.40 $14.40

2013 47.0 $13.00 $13.00

2014 48.0 $10.00 $10.00 44.3 $12.27 $0 $0

2015 46.3 $9.10 $9.10 44.7 $12.27 $42 $0

2016 46.8 $9.78 $9.78 45.8 $11.83 $7 $0

2017 47.3 $10.08 $10.08 46.7 $10.93 $0 $0

2018 47.8 $10.23 $10.23 47.1 $9.95 $0 $0

Five Year Average Payment $10 $0

Mississippi

Calculation for ARC and PLC PaymentCheck if IrrigatedCheck if Irrigated

ARC and PLC Program PaymentsSoybeans

PLC Referrence Price $8.40 40.0

5-Year 5-Year

Mississippi Market ARC Olympic Olympic ARC PLC

County Year Avg Price Average Average Calculated Calculated

Year Yield Price Yield Price Payment Payment

2009 49.0 $9.59 $9.59

2010 42.0 $11.30 $11.30

2011 44.0 $12.50 $12.50

2012 41.0 $14.40 $14.40

2013 48.0 $13.00 $13.00

2014 48.0 $10.00 $10.00 44.7 $12.27 $0 $0

2015 46.7 $9.10 $9.10 44.7 $12.27 $40 $0

2016 47.2 $9.78 $9.78 46.2 $11.83 $8 $0

2017 47.7 $10.08 $10.08 47.3 $10.93 $0 $0

2018 48.2 $10.23 $10.23 47.6 $9.95 $0 $0

Five Year Average Payment $9 $0

Mississippi

Calculation for ARC and PLC PaymentCheck if IrrigatedCheck if Irrigated

ARC and PLC Program PaymentsWheat

PLC Referrence Price $5.50 49.5

5-Year 5-Year

Mississippi Market ARC Olympic Olympic ARC PLC

County Year Avg Price Average Average Calculated Calculated

Year Yield Price Yield Price Payment Payment

2009 59.0 $4.87 $5.50

2010 61.0 $5.70 $5.70

2011 42.0 $7.24 $7.24

2012 61.0 $7.77 $7.77

2013 74.0 $6.87 $6.87

2014 75.0 $5.90 $5.90 60.3 $6.60 $0 $0

2015 63.3 $5.36 $5.50 65.3 $6.67 $30 $6

2016 64.3 $5.50 $5.50 66.1 $6.67 $22 $0

2017 65.3 $5.70 $5.70 67.2 $6.09 $0 $0

2018 66.3 $5.90 $5.90 67.9 $5.70 $0 $0

Five Year Average Payment $10 $1

Mississippi

Calculation for ARC and PLC PaymentCheck if IrrigatedCheck if Irrigated

ARC and PLC Program PaymentsGrain Sorghum

PLC Referrence Price $3.95 100.1

5-Year 5-Year

Mississippi Market ARC Olympic Olympic ARC PLC

County Year Avg Price Average Average Calculated Calculated

Year Yield Price Yield Price Payment Payment

2009 134.0 $3.22 $3.95

2010 95.0 $5.02 $5.02

2011 101.0 $5.99 $5.99

2012 95.0 $6.33 $6.33

2013 118.0 $4.28 $4.28

2014 128.0 $3.41 $3.95 104.7 $5.10 $19 $46

2015 108.7 $3.60 $3.95 104.7 $5.10 $45 $30

2016 109.7 $3.75 $3.95 109.2 $4.74 $29 $17

2017 110.7 $3.87 $3.95 112.1 $4.06 $0 $7

2018 111.7 $3.91 $3.95 112.8 $3.95 $0 $3

Five Year Average Payment $19 $21

Mississippi

Calculation for ARC and PLC PaymentCheck if IrrigatedCheck if Irrigated

ARC and PLC Program PaymentsRice

PLC Referrence Price $6.30 153.0

5-Year 5-Year

Mississippi Market ARC Olympic Olympic ARC PLC

County Year Avg Price Average Average Calculated Calculated

Year Yield Price Yield Price Payment Payment

2009 150.6 $5.81 $6.30

2010 145.0 $4.95 $6.30

2011 144.3 $6.03 $6.30

2012 155.3 $6.48 $6.48

2013 156.8 $6.93 $6.93

2014 159.0 $5.66 $6.30 150.3 $6.36 $0 $83

2015 154.3 $5.77 $6.30 152.4 $6.36 $0 $69

2016 155.3 $5.89 $6.30 155.5 $6.36 $0 $53

2017 156.3 $5.89 $6.30 155.8 $6.36 $0 $53

2018 157.3 $5.91 $6.30 156.1 $6.30 $0 $51

Five Year Average Payment $0 $62

Mississippi

Calculation for ARC and PLC PaymentCheck if IrrigatedCheck if Irrigated

Take Home Message

• Corn and Soybeans – ARC

• Wheat and Milo - PLC

• Rice – PLC

• Cotton – STAX

• SCO – Available if you do not enroll in ARC

• Base and Yield very important for future payments

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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Monthly Farm Price of Wheat in Illinois, January 1947 -August 2012 and Projected Future Range

$1.81 $3.24 $5.74

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$5.80

$3.30