USDA Farm Service Agency announces key dates for new 2014 Farm Bill safety net programs

USDA made some key date announcements on October 2, 2014, pertaining to ARC/PLC/SCO sign up.  I wanted to clarify a few things. When you go sign up in the coming months, you are signing up for both 2014 and 2015 crop years. Even though the 2014 crop year has been completed for wheat, it is a retroactive signup for 2014. You will sign two contracts when you go sign up, one for 2014 and one for 2015 and 2014 crop losses will start to be paid in October 2015 and 2015 crop year losses will be paid out in October 2016.

For winter wheat growers, they don’t actually have to sign up for ARC/PLC by the Nov/Dec 15th dates, they just have until that time to decide if they want to opt out of SCO (if they selected it before Sept. 30th).  It is based on “intent’ to sign up for ARC, not actually physically signing up for ARC.  Also, if a winter wheat grower takes the opt out there isn’t anything to require them to take ARC.  If they miss the deadline of Nov/Dec 15th they are prohibited from choosing SCO but they will be required to pay part of the premium and won’t be able to collect the indemnity if one is owned.

There are a couple Q&A questions on the RMA’s website that clarify all of this as well:

Q. What if I decide I want to enroll into the ARC program after I've selected SCO coverage for winter wheat?

A: Producers who enroll their winter wheat in SCO may elect to withdraw from SCO prior to their acreage reporting date without any penalty. This allows producers additional time to make an informed decision related to whether to enroll in the Agricultural Risk Coverage (ARC) or the Price Loss Coverage (PLC) program. If they choose ARC, they will not be charged a crop insurance premium so long as they withdraw from SCO prior to their acreage reporting date.

Q. Is the one time opt-out of the SCO Endorsement for fall planted wheat (winter wheat) only available if the producer elects ARC?

A: The one-time opt-out can be used whether or not the producer actually elects ARC. The one time opt-out for fall planted wheat is intended for producers who elect or intend to elect ARC. However, the ARC/PLC election will most likely be made after the earlier of the acreage reporting date or December 15, 2014. Therefore, due to farm program timing, there will be no sanction or penalties for producers using this opt-out regardless of whether they elect ARC, PLC, or no FSA farm program at all.

by Brooke Shupe, National Association of Wheat Growers

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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.

USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).