(Posted Mon. Apr 15th, 2013)
Apr. 15: As Congress has extended the 2008 farm bill for one year, farmers have an opportunity to enroll in the Average Crop Revenue Election program and Direct Cyclical and Counter-Cyclical programs in 2013. With sign-up for the programs closing on June 3 for ACRE and August 2 for DCP and CCP, those interested are urged to consider which option better suits their risk management needs and proceed accordingly.
“It is important for farmers to remember that, while a new farm bill has yet to pass, they still have a variety of options to manage risk during the 2013 crop year,” said National Corn Growers Association Public Policy Action Team Chair Jim Reed. “As farmers, we all understand the importance of formulating a strategy to manage risk and selecting the right tools. While you work in the fields , we will continue our work in Washington to ensure that the best possible risk management tools are available for farmers and our safety net remains strong.”
For those considering these programs, it is important to note that the DCP does not vary from previous years with payment distribution beginning in October 2013. The CCP exists still, but it is unlikely to make payments because trigger prices are low, relative to current market prices. While the Marketing Loan Program and Loan Deficiency Payment Program will also exist for the 2013 crop year, LDPs also are unlikely as market prices remain well above loan rates.
Enrollment in the ACRE program will be allowed whether a farm has participated previously or not. Likewise, farms which have enrolled in ACRE previously will not be required to do so. Notably, farmers enrolling in ACRE for 2013 will have direct payments reduced by 20 percent, have loan rates reduced by 30 percent and will no longer be enrolled in the CCP.
The ACRE program is a state revenue based program specific to each crop. As limits on changes in revenue guarantees can change from year to year, state guarantees for the 2013 crop are as of yet unknown. If ACRE payments are triggered for the 2013 crop, they will not occur until after October 2014.
To access an updated ACRE online calculator, click here.
As with any financial decision, NCGA strongly encourages farmers to explore their options and discuss their own situations with their local Farm Service Agency representative.