Ag Policy

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    January 29th, 2015


    ARC for Low Yields – PLC for High Yields

    Many farmers will not elect 100% ARC or PLC.  Even if ARC-CO will make a large 2014-crop corn payments, most will try elect some PLC on acres just in case substantially lower prices might occur in 2015-2018.  In those cases, the firm rule of thumb is to elect PLC on your highest yielding farms first, elect […]

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    January 28th, 2015


    Additional CBO Analysis

    Yesterday, we posted on the new baseline study just released by the Congressional Budget Office (CBO).  Today, I will add some additional analysis gleaned from the report: The CBO is projecting that many growers will sign up for ARC-IC and payments will range from about $350 to 707 million during the five-year life of the […]

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    January 27th, 2015


    How Accurate is CBO on PLC and ARC

    The Congressional Budget Office just released their updated baseline report for all farm programs.  This baseline is an update from last April’s baseline and although their estimate of farm PLC and ARC payments may be fairly accurate over the 10 years of their projections, I highly doubt the accuracy of their projections for the 2014 […]

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    January 25th, 2015


    Possible Maximum ARC-CO and PLC 2014 Payments

    The University of Illinois in their FarmDoc Daily report released estimated ARC and PLC payments by state last week.  For corn, the payments ranged from a low of zero for ARC-CO in multiple states (those with higher than average yields in 2014).  Some of the key corn-growing states with estimated ARC-CO payments of zero were Kansas and Missouri.  Each […]

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    January 15th, 2015


    More Than Half of Dairy Producer’s Enroll in Margin Program

    The USDA just announced that more than 23,000 dairy producers enrolled in the new Dairy Margin Protection Program for 2015.  As an example, in the state of Wisconsin more than 55% of the producers signed up and 55% of those that signed up did so at some level of buy-up coverage.  The $4 level was […]

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    January 14th, 2015


    USDA Announces More Than $18 Million to Support Training and Development for Beginning Farmers and Ranchers

    The USDA announced on January 12, 2015 the availability of more than $18 million in funding to help educate, mentor and enhance the sustainability of the next generation of farmers. This support is available through the Beginning Farmer and Rancher Development Program (BFRDP), administered by USDA’s National Institute for Food and Agriculture (NIFA). The BFRDP […]

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    December 29th, 2014


    Is California Egg Law the Wave of the Future for Farming?

    A recent Business Week article highlighted the current California law regarding the amount of area that chickens are required to have in order for producers to sell eggs into California.  The law was passed a couple of years back requiring at least 116 squares inches of space for each laying hen which was almost a […]

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    December 21st, 2014


    Will Dairy Margin Protection Make Payments in 2015

    Friday, December 19, 2014 was the last day to sign up for the new Dairy Margin Protection Program which insures coverage between $4 and $8 of margin.  This margin is based upon the difference between the US All Milk Price and Feed Costs based upon corn, soybean meal and alfalfa hay.  Earlier in the year, […]

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    December 19th, 2014


    How Does County Yield Affect ARC-CO Payment

    FarmDoc Daily issued a report yesterday on the amount of estimated payments for ARC-CO and PLC by covered crop for the 2014 crop year based upon the updated USDA price information from last week.  It gives you a good idea of the types of payments for each crop based upon the low, medium or high USDA […]

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    December 16th, 2014


    Senate Passes Tax Extender Bill 76-16

    It is now final (other than the President signing it which he will). This gives farmers about two weeks to make purchases of equipment to take full advantage of Section 179, bonus depreciation and other business tax extenders. I just finished the last tax school in Ames, Iowa today. Over 300 in attendance with another […]

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