Ag Policy

Is There An Error in the Dairy Margin Protection Program

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February 24th, 2014

The new farm bill provides dairy farmers with a margin protection program that will pay them if the average milk price for a two month period does not exceed the average feed price.  The average feed price is comprised of corn, soybean meal and alfalfa.  Dairy farmers who enrolled in the program do not have […]

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Make Sure to Review Your Base Acres

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February 23rd, 2014

One of the original proposals in the farm bill discussion was to make payments based on actual production, not base acres.  Well, this did not happen, so for 2014-2018 crop years, your actual ARC or PLC payments will be made based upon your base acres.  For county elected ARC or PLC provisions, this payment will […]

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ARC & PLC Are Not Crop Insurance

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February 17th, 2014

We had a reader ask the following question: “Paul, I have been reading your blogs about federal crop ins.  Is PLC and ARC the whole program or do we still have the traditional options that we have had the last few years? If the traditional plan is still in place will we have to pick […]

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ARC Could Lock in More Revenue Than Crop Insurance

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February 16th, 2014

We have written several posts on Agricultural Risk Coverage over the last couple of weeks, however, the Olympic average calculations called for in ARC may yield higher income levels than crop insurance for the 2014 and 2015 crop years.  ARC is calculated by taking the average revenue for either county or individual coverage.  This Olympic […]

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Some ACA Relief for Employers with 50 to 99 Employees

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February 10th, 2014

The Department of Treasury issued Regulations today (Monday, February 10) announcing that employers with more than 50 employees but less than 100 would not have to offer health insurance or pay a “responsibility” penalty until 2016 (one year later than the postponed 2015 requirement).  Additionally, it appears that seasonal employees that are not expected to […]

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Margin Protection for Dairy Producers

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February 10th, 2014

Dairy farmers are now starting to enjoy healthy margins after several years of either breakeven or loss margins.  The new farm bill provides margin protection for dairy farmers.  This margin protection is calculated based on the difference between the “all-milk price” and average feed cost.  Average feed cost is calculated as the sum of the price for: […]

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Which is Better – ARC or PLC + SCO

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February 6th, 2014

Crop farmers will have two program options to consider under the new Farm Bill.  Option # 1 is Agricultural Risk Coverage (ARC) which covers the risk of the farmer not receiving targeted revenue between the 76% and 86% band.  If “actual” revenues calculated by the USDA fall within this band, then the farmer will collect […]

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FSA Does Not Understand Tax Return Income

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February 3rd, 2014

We received some correspondence from a  CPA whose is battling with the FSA on the definition of AGI for S corporations, LLCs, LLPs, LPs and other similar entities.  The FSA manual on page 6-12 lists the line items from federal income tax returns for computing AGI for purposes of payment limitations.  For corporations filing using Form 1120 […]

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10% of Benchmark Revenue not Benchmark Guarantee

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February 3rd, 2014

A problem with trying to read a 900 page plus farm bill on a small laptop screen is that it is very easy to misread some of the fine print.  A reader gave us a comment regarding ARC that the maximum payout is 10% of benchmark revenue, not benchmark guarantee.  In this case, the actual amount […]

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Crop Insurance Changes in New Farm Bill

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February 2nd, 2014

Supplement Coverage Option (SCO) will be available to a farmer who elects Price Loss Coverage (PLC) instead of Agricultural Risk Coverage (ARC).  ARC provides similar coverage, however, there is no premium to be paid by the farmer, but there is a limit on the  amount of payment that a farmer can receive.   With SCO, the farmer can […]

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