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

Decision Time Is Wrong Time for Farm Bill Changes

February 24, 2015

With new farm bill decision deadlines looming, the Senate Ag Committee is hearing from growers that now is not the time to consider policy or budget changes to the legislation.

Product News

New Cheminova Chemistry to Help Control Herbicide Resistant Weeds

February 23, 2015

Cheminova plans to register pethoxamid, a new herbicide active ingredient, to help growers manage herbicide-resistant weeds.

News

Winters Named Interim Head of PCCA

February 20, 2015

Lonnie Winters has been named interim president and CEO of Plains Cotton Cooperative Association.

Product News

Brake Herbicide Receives Section 18 Approvals in Six States

February 18, 2015

Brake Herbicide has received Section 18 emergency use exemptions for control of glyphosate-resistant Palmer amaranth in six cotton producing states.

Precision Technology

TeeJet Matrix 430 Provides Simple, Easy-to-Use Guidance

February 18, 2015

TeeJet Technologies’ new Matrix 430 GNSS guidance system is ideal for a wide range of field applications.

Precision Technology

TeeJet Launches RX520 High-Precision GNSS Receiver

February 17, 2015

TeeJet Technologies has introduced the RX520 dual frequency GNSS receiver for precision farming operations.

Ginning

NCGA Honors Kelley, Lange and Maguire

February 13, 2015

The National Cotton Ginners Association honored Richard Kelley, Mark Lange and John Maguire with the association’s top awards during its recent annual meeting.

Around The Gin
Product News

New Cheminova Chemistry to Help Control Herbicide Resistant Weeds

February 23, 2015

Cheminova plans to register pethoxamid, a new herbicide active ingredient, to help growers manage herbicide-resistant weeds.

Product News

Brake Herbicide Receives Section 18 Approvals in Six States

February 18, 2015

Brake Herbicide has received Section 18 emergency use exemptions for control of glyphosate-resistant Palmer amaranth in six cotton producing states.

Precision Technology

TeeJet Matrix 430 Provides Simple, Easy-to-Use Guidance

February 18, 2015

TeeJet Technologies’ new Matrix 430 GNSS guidance system is ideal for a wide range of field applications.

Precision Technology

TeeJet Launches RX520 High-Precision GNSS Receiver

February 17, 2015

TeeJet Technologies has introduced the RX520 dual frequency GNSS receiver for precision farming operations.

Disease Control / Nematodes

Velum Total Approved for Cotton, Peanuts in 2015

February 12, 2015

Bayer CropScience has received registration for Velum Total, a new insecticide/nematicide for use in cotton and peanuts in 2015.

Disease Control / Nematodes

EPA Approves TOPGUARD Terra for Cotton Root Rot Control

February 6, 2015

TOPGUARD Terra fungicide from Cheminova has received EPA registration for control of cotton root rot.

Product News

Deltapine to Release Five Bollgard II XtendFlex Cotton Varieties

January 27, 2015

Following USDA deregulation of the Bollgard II XtendFlex cotton technology, Deltapine has announced plans to offer five new B2XF varieties for the 2015 season.

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.

Latest News
News

Decision Time Is Wrong Time for Farm Bill Changes

February 24, 2015

With new farm bill decision deadlines looming, the Senate Ag Committee is hearing from growers that now is not the time to consider policy or budget changes to the legislation.

News

Winters Named Interim Head of PCCA

February 20, 2015

Lonnie Winters has been named interim president and CEO of Plains Cotton Cooperative Association.

Common Thread

Common Thread Luncheon Set to Review and Discuss Key Industry Issues

February 16, 2015

Cotton Grower Magazine is hosting the Common Thread Luncheon on February 27 – in conjunction with the Mid-South Farm and Gin Show in Memphis – to examine some of the key issues impacting the U.S. cotton industry.

Ginning

NCGA Honors Kelley, Lange and Maguire

February 13, 2015

The National Cotton Ginners Association honored Richard Kelley, Mark Lange and John Maguire with the association’s top awards during its recent annual meeting.

News

Advancing Biocontrols

February 12, 2015

Today’s biocontrol companies have a more realistic view of what it takes to penetrate the ag market.

News

Flowers Re-Elected American Cotton Producers Chair

February 11, 2015

Bowen Flowers from Clarksdale, MS, was re-elected as chairman of the American Cotton Producers for 2015.

News

National Cotton Council Names 2015 Directors

February 11, 2015

The National Cotton Council directors for 2015 were announced at the recent NCC Annual Meeting in Memphis.

News

National Cotton Council 2015 State Unit Officers Named

February 11, 2015

NCC state unit officers for 2015 were elected at the organization’s recent annual meeting.

Achievement

Anderson, Kimbrell Honored During NCC Annual Meeting

February 10, 2015

Woody Anderson and the late Miles Kimbrell were honored for their industry leadership and achievements by the National Cotton Council during the organization’s recent annual meeting.

News

Sledge Taylor Elected NCC Chairman for 2015

February 9, 2015

Sledge Taylor, cotton ginner from Como, MS, was elected National Cotton Council chairman for 2015.

News

NCC: High Levels of Global Stocks Will Make 2015 Challenging

February 7, 2015

NCC economists say 2015 will be another challenging year for the U.S. cotton industry, based on high levels of global cotton stocks and uncertainties about global mill cotton use.

News

Hancock to Lead CCI in 2015

February 6, 2015

Dahlen Hancock, a cotton producer from Ropesville, TX, is the newly-elected president of Cotton Council International for 2015.

News

Thirteen Cotton Producers Join 2015 NCC Policy Education Program

February 6, 2015

Thirteen U.S. cotton producers have been selected to participate in the 2015 NCC Policy Education Program.

News

The Exponential Rise of Biopesticides

February 4, 2015

Biopesticides are the fastest-growing crop protection market sector, increasing at twice the compound annual growth rate of the crop protection market as a whole.

News

Information and Education Highlight 2015 Mid-South Farm and Gin Show

February 3, 2015

The 2015 Mid-South Farm and Gin Show – now in its 63rd year – returns to the Cook Convention Center in Memphis February 27-28, featuring more than 400 exhibitors focused on fiber and grain production.