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.”

Pages: 1 2

Topics: ,

Leave a Reply

News Stories
News

Important Farm Bill Deadlines Approaching

January 15, 2015

With sign-up deadlines approaching, farmers have several important decisions to make under the 2014 farm bill.

News

How to Incorporate Biocontrols Into a Pest Management Program

January 26, 2015

Crafting a “softer” pest management program for your cotton fields is likely in your future – if it’s not here already.

Product News

Bollgard II XtendFlex Cotton Poised for Limited Introduction

January 21, 2015

A limited introduction of Bollgard II XtendFlex cotton varieties is planned for the 2015 planting season through Deltapine and select licensees.

News

Snider Named Outstanding Young Cotton Physiologist

January 17, 2015

John Snider, assistant professor with the University of Georgia, was honored as Outstanding Young Cotton Physiologist during the recent Beltwide Cotton Conferences in San Antonio.

Product News

USDA Deregulates Dicamba-Tolerant Technologies for Cotton and Soybeans

January 16, 2015

The USDA has announced its decision to deregulate Bollgard II XtendFlex cotton and Roundup Ready 2 Xtend soybeans – Monsanto’s dicamba-tolerant trait technologies for those crops.

News

Crop Management Seminar Presentations Now Available Online

January 16, 2015

Eight presentations from Cotton Incorporated’s Crop Management Seminar (CMS) in Tifton, GA last November are now available for online viewing.

Product News

Bayer CropScience Anticipates Registration for New Cotton and Peanut Insecticide

January 15, 2015

Bayer CropScience anticipates the registration of Velum Total, the company’s newest insecticide/nematicide, for the 2015 cotton and peanut season in the Southeast.

Around The Gin
Product News

Bollgard II XtendFlex Cotton Poised for Limited Introduction

January 21, 2015

A limited introduction of Bollgard II XtendFlex cotton varieties is planned for the 2015 planting season through Deltapine and select licensees.

Product News

USDA Deregulates Dicamba-Tolerant Technologies for Cotton and Soybeans

January 16, 2015

The USDA has announced its decision to deregulate Bollgard II XtendFlex cotton and Roundup Ready 2 Xtend soybeans – Monsanto’s dicamba-tolerant trait technologies for those crops.

Product News

Bayer CropScience Anticipates Registration for New Cotton and Peanut Insecticide

January 15, 2015

Bayer CropScience anticipates the registration of Velum Total, the company’s newest insecticide/nematicide, for the 2015 cotton and peanut season in the Southeast.

Product News

New FiberMax and Stoneville Varieties for 2015 Feature GLT Technology

January 14, 2015

Bayer CropScience has announced four new FiberMax and Stoneville cotton varieties for the 2015 season.

Product News

PhytoGen Introduces 2015 Cotton Varieties

January 13, 2015

PhytoGen’s cottonseed portfolio for 2015 includes proven high yielding varieties, as well as new varieties featuring advanced insect, nematode and disease technologies.

Product News

Monsanto and FMC Renew and Broaden Crop Protection Agreement

January 8, 2015

Monsanto and FMC have agreed to extend and broaden their current relationship to help benefit cotton, corn and soybean growers through Roundup Ready PLUS Crop Management Solutions.

Product News

Deltapine Announces Class of 15 Cotton Varieties

December 16, 2014

Deltapine has announced two new high-yielding cotton varieties for its Class of 15, with several potential varieties awaiting regulatory approvals of the Bollgard II XtendFlex technologies.

Precision Technology

NORAC Hybrid Mode Receives U.S. and European Patent Approval

December 8, 2014

NORAC Systems International Inc.’s Hybrid Mode in-crop spraying feature has received patent approval in the U.S. and Europe.

Latest News
News

How to Incorporate Biocontrols Into a Pest Management Program

January 26, 2015

Crafting a “softer” pest management program for your cotton fields is likely in your future – if it’s not here already.

News

Snider Named Outstanding Young Cotton Physiologist

January 17, 2015

John Snider, assistant professor with the University of Georgia, was honored as Outstanding Young Cotton Physiologist during the recent Beltwide Cotton Conferences in San Antonio.

News

Crop Management Seminar Presentations Now Available Online

January 16, 2015

Eight presentations from Cotton Incorporated’s Crop Management Seminar (CMS) in Tifton, GA last November are now available for online viewing.

News

Important Farm Bill Deadlines Approaching

January 15, 2015

With sign-up deadlines approaching, farmers have several important decisions to make under the 2014 farm bill.

News

NCC Asks for Planting Survey Responses

January 9, 2015

The National Cotton Council is seeking producer responses to the annual survey of 2015 planting intentions by January 16.

News

New Cotton Board Appointments Announced

January 9, 2015

Agriculture Secretary Tom Vilsack has appointed 12 members and 12 alternate members to serve three-year terms on the Cotton Board.

News

Pellow to Succeed Anderson as PhytoGen R&D Lead

January 9, 2015

John Pellow is succeeding David Anderson as PhytoGen global breeding leader for cotton at Dow AgroSciences.

News

USDA Helps Kick Off the International Year of Soils

January 8, 2015

USDA has joined other global organizations in celebrating the International Year of Soils.

Achievement

Collins Named Extension Cotton Specialist of the Year

January 7, 2015

Guy Collins of North Carolina State University has been honored as the 2015 Extension Cotton Specialist of the Year.

Achievement

Scheffler Receives 2014 Cotton Genetics Research Award

January 7, 2015

Dr. Jodi Scheffler, a respected cotton geneticist with USDA’s Agricultural Research Service, is the recipient of the 2014 Cotton Genetics Research Award.

Achievement

Jimmy Dodson Receives 2014 Cotton Achievement Award

January 6, 2015

Jimmy Dodson, a third-generation cotton farmer from Robstown, TX and a prominent leader in the cotton industry, has received the 2014 Cotton Achievement Award from Cotton Grower magazine.

Cotton Production

Cotton Grower Acreage Survey: Growers Dialing Back Acres in 2015

January 5, 2015

The 2015 Cotton Grower Acreage Survey suggests cotton farmers could reduce cotton plantings by more than 10 percent this year.

News

USDA Extends Public Comment Period for Conservation Stewardship Program Rule

December 31, 2014

USDA’s Natural Resources Conservation Service has extended the public comment period on the Conservation Stewardship Program interim rule through January 20, 2015.

News

RMA Announces APH Yield Exclusion Details

December 26, 2014

The Risk Management Agency has announced program details related to the Actual Production History Yield Exclusion provision to the 2014 Farm Bill, including information on eligible crops, crop years and counties where producers may exclude certain yields.

News

Consequences of Texas Drought Continue to Linger

December 23, 2014

Although parts of Texas have received rain, drought will continue to be an issue, with 35 percent of the state still in extreme or exceptional drought status.