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
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.

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.

News

Indigo Named Technology Pioneer by World Economic Forum

June 16, 2017

The World Economic Forum has selected Indigo as a Technology Pioneer – a group of the world’s most innovative companies.

News

Cotton Highlights from June WASDE Report

June 9, 2017

USDA’s World Agricultural Supply and Demand Estimates for June reflect a slowing in U.S. cotton exports in the past month, as well as continued increases in global consumption.

News

FY18 Federal Budget Proposal Very Concerning for Cotton

May 25, 2017

The NCC is ready to work with Congress regarding the “very concerning” program cuts for agriculture in the Trump Administration’s fiscal year 2018 budget.

News

NCC: Maintaining NAFTA Benefits is Crucial

May 22, 2017

The National Cotton Council says maintaining a vibrant North American Free Trade Agreement creates a positive trading platform for U.S. agriculture, including cotton and textiles.

Around The Gin
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.

Product News

EPA Approves Monsanto’s NemaStrike Technology

May 2, 2017

The EPA has issued registration for tioxazafen, a new nematicide from Monsanto that will be branded as NemaStrike Technology for nematode control and yield protection in cotton, corn and soybeans.

Product News

Indigo Partners Launched for In-Field Technology Testing

April 25, 2017

Indigo is launching Indigo Partners, a collaboration of 25 U.S. growers and agronomic experts to test agricultural technologies – including Indigo’s microbial seed treatments – during 2017.

Product News

UPI Adds New Herbicide Products

April 14, 2017

UPI has added two new herbicides to its portfolio of high quality crop protection products for the U.S.

Product News

FiberMax One Ton Club Membership Tops 1,000

April 14, 2017

A record number of growers qualified for the FiberMax One Ton Club in 2016 with four-bale and higher yields with FiberMax varieties.

Product News

Deltapine NPE Program Kicks off Tenth Year

April 10, 2017

Nearly 200 growers will participate in the tenth season of the Deltapine New Product Evaluator (NPE) Program.

Latest News
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.

News

Indigo Named Technology Pioneer by World Economic Forum

June 16, 2017

The World Economic Forum has selected Indigo as a Technology Pioneer – a group of the world’s most innovative companies.

News

First 2017 Bale of U.S. Cotton Delivered in South Texas

June 12, 2017

The first official certified bale of cotton in the U.S. for 2017 has been delivered in Harlingen, TX.

News

Cotton Highlights from June WASDE Report

June 9, 2017

USDA’s World Agricultural Supply and Demand Estimates for June reflect a slowing in U.S. cotton exports in the past month, as well as continued increases in global consumption.

News

FY18 Federal Budget Proposal Very Concerning for Cotton

May 25, 2017

The NCC is ready to work with Congress regarding the “very concerning” program cuts for agriculture in the Trump Administration’s fiscal year 2018 budget.

News

NCC: Maintaining NAFTA Benefits is Crucial

May 22, 2017

The National Cotton Council says maintaining a vibrant North American Free Trade Agreement creates a positive trading platform for U.S. agriculture, including cotton and textiles.

News

NCC: Lighthizer Confirmation Positive for Exports

May 15, 2017

The National Cotton Council calls the confirmation of Robert Lighthizer as U.S. Trade Representative an important step for promoting fair trade and export development.

News

Cotton Highlights from May WASDE Report

May 10, 2017

USDA’s World Agricultural Supply and Demand Estimates for May indicate higher cotton production in the U.S. and other countries for 2017, continued demand and consumption and lower global cotton stocks.

News

Bayer to Sell Liberty Brands in Monsanto Acquisition

May 9, 2017

Bayer has reportedly agreed to sell its Liberty herbicide and LibertyLink-branded seeds businesses to help gain approval of its acquisition of Monsanto.

News

NCC Sets Dates for 2017 P.I.E. Program Tours

May 2, 2017

The National Cotton Council has scheduled tour dates and locations for the 2017 Producer Information Exchange program.

News

Omnibus Bill Snubs Proposed Cottonseed Policy

May 1, 2017

Despite strong bipartisan support in Congress, a cottonseed policy was excluded from the fiscal year 2017 omnibus appropriations bill – a move that the National Cotton Council called extremely disappointing to the cotton industry and its producers.

News

NCC Sets 2017-18 Emerging Leaders Class

April 27, 2017

Twelve U.S. cotton industry members have been named to the National Cotton Council’s Emerging Leaders Program for 2017-18.

News

Cotton Organizations Praise Perdue Confirmation

April 24, 2017

The confirmation of Sonny Perdue as the 31st U.S. Secretary of Agriculture has garnered praise and support from the cotton industry.

News

USDA Announces 2017 Cotton Loan Rate Differentials

April 19, 2017

The USDA’s Farm Service Agency has announced the 2017-crop loan rate differentials for upland and extra-long staple cotton.