Book your WILLAg event today for this fall or winter. We'll be glad to work with you to set up a WILLAg Panel of analysts to discuss the commodity markets, arrange for University of Illinois campus based agricultural specialists in economics, crops, or livestock, or simply to come speak to your group or organization. Contact Todd Gleason for complete details.
Todd E. Gleason, Farm Broadcaster College of ACES / Univesity of Illinois Extension email@example.com or (217) 333-9697
Pro Farmer Midwest Crop Tour results are plotted here against the United States Department of Agriculture National Agricultural Statistic Service corn yield projections and the Pro Farmer Newsletter estimates. USDA NASS estimates are as of August 1, 2014 and the Pro Farmer crop tour yields were taken the week beginning Monday August 18. The Pro Farmer estimates were made August 22, 2014.
The final Pro Farmer Midwest Crop Tour estimates tallied corn and soybean yields across seven Midwestern states stretching through the primary corn growing counties in the United States. The tour is watched closely by those in the grain and oilseed trade. However, it should be noted USDA gathers much more objective and survey based information about the size of U.S. crops.
by Carl Zulauf, The Ohio State University & Gary Schnitkey, University of Illinois
The 2014 farm bill gives Farm Service Agency (FSA) farm owners the option to choose their crop program for the 2014 through 2018 crop years. A factor, perhaps key factor that will influence this decision is the payment by the program choices for the 2014 crop year. This article uses the just released U.S. yield and price estimates in the August 2014 World Agricultural Supply and Demand Estimates (WASDE) to calculate an indicator of potential payments by the Agriculture Revenue Coverage - county program (ARC-CO) and the Price Loss Coverage (PLC) program. The indicator estimates are for the 2014 crop year for barley, corn, oats, long grain rice, medium (and short) grain rice, sorghum, soybeans, and wheat. These are indicator estimates because they use U.S. yield not county yield or farm payment yield, as ARC-CO and PLC use, respectively. AR-CO payments, for example, will vary across counties, with some counties having no payments due to high yields and some counties having large payments due to low yields. Thus, this article is not estimating payments that an individual FSA farm owner would receive. Nevertheless, the indicator estimates using U.S. yields should help frame questions and perspectives for FSA farm owners regarding program choices.
Calculation of Estimated Program Payments
ARC-CO makes payments when county revenue for the crop year is less than 86% of the county's benchmark revenue. ARC-CO pays when actual revenue is between 76% and 86% of benchmark revenue. PLC makes payments when the U.S. crop year average price is less than the crop's reference price. The reference price is
A note for the weekend with four items from Todd Gleason ACES / Extension / WILLAg.
Check out WILLAg's Commodity Week! I tried an experimental format and would like to know what you think. Panelist included Matt Bennett, Jacquie Voeks, & Mike Zuzolo. Shoot me an email with your thoughts - firstname.lastname@example.org.
Watch your email for WILLAg's Crop Production & WASDE Newsletter special from Dave Dickey. The reports are due out from USDA at 11am central Tuesday.
Thursday is Agronomy Day on the University of Illinois campus in Urbana-Champaign. Todd will emcee the day on the south farms just east of the State Farm Center (the Assembly Hall) on St. Mary's road. See details a bit further down.
Thursday night kicks off the fall WILLAg Outlook Panel schedule in Shelbyville. The details are slow coming in on that one, but check out this webpage Monday for the finalized event.
Explore the latest breakthroughs in agriculture and technology with researchers and Extension specialists from the University of Illinois this Thursday at the University of Illinois south farms research plots. The day starts at 7am just to the east of the State Farm Center (Assembly Hall) on St. Mary's Road. Each tour lasts about an hour, so please come early if you plan to take all four tours. Field tours depart from the St. Mary's location, making stops at
Friday the United States Department of Agriculture Farm Service Agency made a series of announcements related to the new farm programs' signup period. Farmers will make final irrevocable decisions between the ARC & PLC programs sometime after January 1, 2015.
timeline posted to USDA FSA website August 1, 2014
Letters are in the mail this month notifying farm operators of current base acres and yields, along with 2009-2012 planting histories. The letter asks these numbers be confirmed or updated as the first part of the sign up process.
Online tools are under development at the University of Illinois to aid producers throughout the nation. Those tools may be ready by the official end of summer (September 22, 2014), but have not yet been released.
The following note was posted the USDA FSA website August 1, 2014;
WASHINGTON, Aug. 1, 2014 — U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Juan M. Garcia announced today that farmers should start receiving notices updating them on their current base acres, yields and 2009-2012 planting history. The written updates are an important part of preparing agricultural producers for the new safety net programs established by the 2014 Farm Bill.
“We’re sending these reports to make sure that farmers and ranchers have key information as they make critical decisions about programs that impact their livelihood,” said Garcia. “It’s important that producers take a few minutes to cross check the information they receive with their own farm records. If the information is correct, no further action is needed at this time. But if our letter is incomplete or incorrect, producers need to contact their local FSA county office as soon as possible.”
Verifying the accuracy of data on a farm’s acreage history is an important step for producers enrolling in the upcoming Agriculture Risk Coverage (ARC) program and the Price Loss Coverage (PLC) program. Later this summer, farmers and ranchers will have an opportunity to update their crop yield information and reallocate base acres.
“We’re working hard to prepare and educate farmers on the new programs created by the 2014 Farm Bill,” added Garcia. “I encourage producers to bring their USDA notice to any scheduled appointments with the local FSA county office. This will help ensure they have the information they need with them to discuss the available program options.”
By mid-winter all producers on a farm will be required to make a one-time, unanimous and irrevocable election between price protection and county revenue protection or individual revenue protection for 2014-2018 crop years. Producers can expect to sign contracts for ARC or PLC for the 2014 and 2015 crop years in early 2015.
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 (includes short grain rice and temperate japonica rice), safflower seed, sesame, soybeans, sunflower seed, and wheat. Upland cotton is no longer a covered commodity.