Ag Policy

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    April 27th, 2016


    Pooling is Back!

    Senator Backus a few years ago proposed replacing the current tax depreciation system with a pooling system.  Under that system, personal property purchases and sales would be “pooled” together and the net remaining number would be multiplied by a percentage for that year to arrive at your net depreciation deduction.  If the net number was […]

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    March 3rd, 2016


    Final FSA Yields More Likely to be Under NASS Yields?

    There is a lot of chatter regarding the lack of ARC-CO payments for the 2014 crop year due to yields coming in higher than what farmers might have expected for their county.  When we were doing Farm Bill analysis about two years ago, we had taken a look at how final FSA yields compared to […]

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    February 24th, 2016


    2015 Estimated ARC-CO Corn and Soybean Payment Amounts

    Farm Doc Daily put out by the University of Illinois just posted an article on the estimated 2015 ARC-CO corn and soybean payments.  Maps were provided showing an estimate of the payment by county and these maps are based upon the NASS yields that were released last week and using the current MYA price estimates […]

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    February 13th, 2016


    Can You Defer ARC/PLC Payments?

    I continue to get questions regarding whether you are allowed to defer 2014 ARC / PLC payments received in 2015 to 2016.  The confusion relates to the misconception that these payments qualify as crop insurance proceeds.  These payments are agricultural program payments.  Crop insurance proceeds related to yield losses are allowed to be deferred one […]

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    February 11th, 2016


    Some Crops See More Premiums Paid Than Claims

    Crop Insurance continues to come under attack from certain members of Congress.  They will have less ammunition based upon claims for 2015 crops. Through February 8, 2016, the RMA has paid out total claims of about $5.482 billion.  Total premiums assessed to farmers were about $9.714 billion.  This results in a loss ratio of .56.  […]

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    February 9th, 2016


    Be Careful What You Wish For!

    Chris Clayton of DTN Progressive Farmer just did a post on their website regarding possible lawsuits for those counties where no ARC-CO payments were made for the 2014 crop year.  The attorney’s are complaining that the FSA did not follow the directions of the Farm Bill when it came to determining crop yields for each […]

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    February 9th, 2016


    Is Crop Insurance Values That Much Lower Than Last 10 Years

    Expanding on our previous post, I decided to work up a table showing the insurance values over the last 10 years plus an estimate for this year.  I based it on an APH for 2015 of 185 with a 2 bpa adjustment for each year going back.  Below is the chart showing these values for […]

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    February 5th, 2016


    Lowest Spring Crop Insurance Price in Last 10 Years?

    February is the month for determining the final “spring” discovery price for crop insurance purposes.  This year is shaping up to the be the lowest insurance price for the last 10 years.  From 2007 to 2015, the lowest corn spring insurance price was $3.99 in 2014, $4.04 in 2009 and $4.06 in 2007.  Last year […]

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    February 4th, 2016


    Does Cottonseed Oil Qualify for Other Oilseed Treatment Under 2014 Farm Bill

    The USDA just announced that they will not include cottonseed as an oilseed.  The cotton industry and other farm groups have been lobbying USDA to include this as an other oilseed and likely then allow cotton growers to elect PLC on these acres and receive a payment at least for the next few years assuming […]

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    January 24th, 2016


    Continued Headwinds for Ag

    The Federal Reserve Bank of Kansas City provides several publications throughout the year on trends in the farming sector for their region (Kansas, Missouri, Nebraska, Oklahoma, Wyoming, Colorado and New Mexico).  In an article titled “Supply and Demand Fundamentals Weighing on Ag Economy”, it does a good job of outlining the headwinds that Ag still […]

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