(Posted Tue. Aug 19th, 2014)
This winter, farmers and landowners will need to make important, one-time decisions about risk coverage packages authorized through the 2014 Farm Bill.
To help growers and landowners understand their options and choose the right fit for their situation, DTN and the National Corn Growers Association are hosting a free webinar this Thursday, Aug. 21, at 9 a.m. CDT.
The webinar will be hosted by DTN executive editor Marcia Taylor and include presentations from economists Carl Zulauf of Ohio State University and Gary Schnitkey of the University of Illinois.
“It’s very important for farmers to understand the ramifications of one-time program decisions that will affect their farms for years to come,” said Jim Reed, an Illinois corn grower and chair of NCGA’s Public Policy Action Team. “We’re proud of NCGA’s work on federal legislation with a program like Ag Risk Coverage to provide a smart and cost-efficient, market-based approach to managing risk.”
Later this winter, farmers will make a one-time choice between Price Loss Coverage and Agricultural Risk Coverage for their 2014-2018 crops. PLC is a price-only program similar to past counter-cyclical programs. ARC benchmarks revenue and pays when there is a shortfall. It has features that resemble GRIP insurance policies, based on county yields or individual yields.
PLC is the default program, meaning that farmers must opt-in to take advantage of ARC benefits. Growers in some Midwest counties who do not opt-in to ARC could be sacrificing $45-77 per acre in 2014 payments. The current prices for wheat, corn and soybeans are unlikely to trigger payments under PLC.