facebook_pixel

The New Farm Bill Offers Many Options Requiring Careful Decisions

Congratulations, cotton growers! You now have a shiny, new farm bill, forged over nearly three years of debate, deliberation and a dash of partisan politics.

In essence, there’s something new for everyone and for every crop. Direct payments, counter-cyclical payments and the ACRE program are history. There’s a greater emphasis on risk management and crop insurance. And there’s a whole new list of programs that growers need to examine closely to determine the best fit for their farming operation.

 

The National Cotton Council recently completed 49 Farm Bill education sessions to help give growers a better understanding of the legislation and the decisions they’ll need to make. Click here to find out more.

 

Wading Through the Options

“This bill is very detailed and there are a lot of complicated decisions to make,” said Dr. Joe Outlaw, professor and Extension economist with Texas A&M University and co-director of the Agricultural and Food Policy Center (AFPC). “The information we have today is based on initial interpretations of the bill, plus discussions and indications on how USDA will implement it.”

For most crops but cotton, producers will choose between the Agricultural Risk Coverage (ARC) program or Price Loss Coverage (PLC). Both programs will cover income losses based on program guidelines, and both allow growers the option of a one-time reallocation of base acres to crops that were planted on their farm between the 2009 and 2012 crop years – with the exception of cotton.

“When sign-up opens at FSA offices, growers need to decide if they want to reallocate their base acres or not, and if they want their non-cotton acres to be protected through ARC or PLC,” explained Outlaw.

“With ARC, they have a choice between a county program based on the experience an entire county has had or an individual program based on individual farm results.”

Growers will need to make decisions on a crop-by-crop basis for each farm, unless they choose the individual ARC option which covers all crops on that farm. If no decisions are made for the 2014 crop, the farm would automatically be enrolled in PLC for the 2015 crop and beyond.

ARC payments will be based on benchmarks calculated by the five-year average of market prices and average county yields, with different calculations used for irrigated and non-irrigated crops. PLC pays on 85 percent of base acres. Payments, however, will be limited to a total of $125,000 per person for all programs combined.

What About Cotton?

The new farm bill removes cotton from all Title I programs and establishes a new crop insurance safety net for cotton growers. It maintains and/or modifies several existing programs like the Upland cotton marketing loan, the ELS cotton loan and competitiveness programs and the Economic Adjustment Assistance Program (EEAP) for the domestic textile industry. And, it designates all cotton base acres as of September 30, 2013, as generic base for planning purposes.

The Stacked Income Protection Plan – or STAX – becomes the centerpiece of the new cotton program. It’s a new revenue insurance product available for purchase on all Upland cotton acres beginning in 2015.

“With cotton moving to more reliance on insurance and, because of the late passage of the Farm Bill and the implementation timeline for crop insurance products, the 2014 crop becomes a transition year for cotton,” said Dr. Gary Adams, vice president, Economics and Policy Analysis with the National Cotton Council. “This year, growers can receive a payment equivalent to 5.4 cents per pound on all 2013 base acres and the direct payment yield.

“There is also a provision to extend this transition into 2015, at a reduced rate, for growers in a county where STAX will not be available.”

Topics: ,

Leave a Reply

News Stories
Product News

Maximizer Club Honors Top FiberMax Dryland Growers

August 17, 2017

The FiberMax Maximizer Club honored 121 growers who yielded at least 1,000 lb/A on dryland acres with FiberMax varieties in 2016.

Product News

Monsanto, Valent Expand Roundup Ready PLUS Partnership

August 7, 2017

Monsanto and Valent U.S.A. are expanding their crop protection partnership for the 2018 Roundup Ready PLUS Crop Management Solutions platform.

Cotton Sprayer
News

Proper Tank Cleaning Focus of New Webcast

August 4, 2017

A new webcast on methods for proper tank cleaning of sprayer systems has been added to the Focus on Cotton online series from the Plant Management Network and Cotton Incorporated.

PhytoGen trials
News

Southeast, Western Cotton Growers Set for Texas P.I.E. Tour

August 2, 2017

Fifteen growers from the Southeast and California will visit cotton operations in Texas in mid-August as part of the NCC’s 2017 Producer Information Exchange Program.

Product News

New Broadleaf Burndown Option Coming from Dow AgroSciences

July 31, 2017

A new burndown option for tough broadleaf weeds has shown excellent promise in trials across the Mid-South and Midwest.

News

Southwest Cotton Producers to Visit Georgia on P.I.E. Tour

July 24, 2017

Eleven Southwest cotton producers will visit farming operations in Georgia the week of July 30 as part of the NCC’s 2017 Producer Information Exchange Program.

News

Cottonseed Provisions Part of FY18 Ag Appropriations Bill

July 20, 2017

Several key cottonseed policy provisions are included in the FY18 Agriculture Appropriations bill approved July 20.

Around The Gin
Product News

Maximizer Club Honors Top FiberMax Dryland Growers

August 17, 2017

The FiberMax Maximizer Club honored 121 growers who yielded at least 1,000 lb/A on dryland acres with FiberMax varieties in 2016.

Product News

Monsanto, Valent Expand Roundup Ready PLUS Partnership

August 7, 2017

Monsanto and Valent U.S.A. are expanding their crop protection partnership for the 2018 Roundup Ready PLUS Crop Management Solutions platform.

Product News

New Broadleaf Burndown Option Coming from Dow AgroSciences

July 31, 2017

A new burndown option for tough broadleaf weeds has shown excellent promise in trials across the Mid-South and Midwest.

Product News

Protect Cotton Potential from Weeds, Worms and Diseases

July 12, 2017

Southeast cotton producers say latest technologies from PhytoGen help protect yield and quality.

Product News

Monsanto “Troubled” by Arkansas Dicamba Decision

June 26, 2017

Monsanto has weighed in on the Arkansas Plant Board’s proposed ban of dicamba use in the state.

Product News

Drexel Adds Two Regional Sales Reps

June 16, 2017

Kyle Herring and David Davis have joined Drexel Chemical Company as regional sales representatives.

Product News

Dow AgroSciences Launching Enlist Corn in 2018

June 16, 2017

Following the launch of Enlist cotton, Dow AgroSciences will make Enlist corn commercially available for 2018 after receiving Chinese import approvals.

Product News

Transform Earns Section 18 Exemptions for Cotton, Sorghum

May 4, 2017

Transform WG insecticide has received Section 18 emergency use exemptions for use in cotton and sorghum in select states for the 2017 production season.

Latest News
News

DuPont and Dow Merger to Close August 31

August 7, 2017

The merger of DuPont and Dow Chemical will be official at the end of August.

News

Proper Tank Cleaning Focus of New Webcast

August 4, 2017

A new webcast on methods for proper tank cleaning of sprayer systems has been added to the Focus on Cotton online series from the Plant Management Network and Cotton Incorporated.

News

Southeast, Western Cotton Growers Set for Texas P.I.E. Tour

August 2, 2017

Fifteen growers from the Southeast and California will visit cotton operations in Texas in mid-August as part of the NCC’s 2017 Producer Information Exchange Program.

News

NCC: Bring Cotton Back as Title I Commodity

July 25, 2017

During a July 25 Senate Ag Committee hearing, NCC representatives reinforced the reasons why cotton needs to be included as a Title I commodity in the next farm bill.

News

Southwest Cotton Producers to Visit Georgia on P.I.E. Tour

July 24, 2017

Eleven Southwest cotton producers will visit farming operations in Georgia the week of July 30 as part of the NCC’s 2017 Producer Information Exchange Program.

News

Cottonseed Provisions Part of FY18 Ag Appropriations Bill

July 20, 2017

Several key cottonseed policy provisions are included in the FY18 Agriculture Appropriations bill approved July 20.

News

New Webcast Targets Resistant Ragweed Management

July 19, 2017

A new webcast on effective management of herbicide-resistant common ragweed has been added to the Focus on Cotton online series from the Plant Management Network and Cotton Incorporated.

News

Congress Urges Action on Economic Program for Cotton Producers

July 19, 2017

A bipartisan block of 135 Senators and Representatives are urging support, through USDA, to operate the Cotton Ginning Cost Share Program on a continuing basis, beginning with the 2016 crop year.

News

Missouri Lifts Dicamba Ban, Tightens Application Rules

July 14, 2017

The Missouri Department of Agriculture has lifted its ban on new dicamba formulations after developing Special Local Need labels and restrictions for their use.

News

Missouri Joins Dicamba Ban; New Emergency Rules in Tennessee

July 12, 2017

Missouri became the second state to ban dicamba on July 7, as drift complaints continue to build in the Mid-South. Now Tennessee has put new rules in place, as well.

News

Cotton Highlights from July WASDE Report

July 12, 2017

A projected decrease in U.S. cotton production and an anticipated increase in India’s production highlight USDA’s WASDE cotton report for July.

News

Mid-South Producers Set for San Joaquin Valley P.I.E. Tour

July 10, 2017

Twelve Mid-South cotton producers will visit California's San Joaquin Valley on the NCC’s first Producer Information Exchange tour of 2017.

News

Arkansas Sets Dicamba Ban, Increased Penalties

July 8, 2017

An emergency rule banning the use and sale of dicamba in Arkansas with higher penalties for infractions is set to go into effect July 11.

News

Arkansas Plant Board Votes to Ban Dicamba. Now What?

June 23, 2017

Following nearly 250 dicamba drift complaints, the Arkansas Plant Board passed a proposed emergency rule June 23 to ban the use of in-crop dicamba and to expedite the rule increasing civil penalties for dicamba misuse.

News

U.S. Department of Justice Okays DowDuPont

June 16, 2017

The U.S. Department of Justice has cleared the way for the merger of DuPont and Dow Chemical.