Farmers Wait for Farm Bill, Risk Program Finalization 

PEORIA – Illinois farmers are concerned about farm program election under the 2014 farm bill, and with good reason, according to Illinois Corn. Rulemaking has started, farm program signup is delayed and farmers are being asked to purchase inputs and plant a crop without any idea of the safety net underneath them, tweeted Lindsay Mitchell, special program coordinator for Illinois Corn, in a Daily Update to members. Peoria County Farm Bureau manager Patrick Kirchhofer agrees that the rollout of the new Agricultural Risk Program (ARC) under the new farm bill has been slow going.

“They are still trying to figure out the details of the program. You wouldn’t think that would be the case, but the way I understand it Congress is still finetuning the farm bill,” Kirchhofer said. “That may go on a couple of more months.” Some differences between ARC and the Average Crop Revenue Election (ACRE) program in the 2008 farm bill have emerged, Kirchhofer continued, providing farmers a pretty good glimpse of what the program will offer. 

“The primary thing is that direct payments have been dropped, and that’s something that farm bureau and commodity groups have been pushing for. There are some minor changes to crop insurance, but nothing major. I think as time goes by and farmers hear more of the details, they’ll be able to make better decisions,” Kirchhofer said. “Once they make their decisions, they will not have a chance to change them through the extension of the farm bill, which is the 2018 crop year.”

ARC vs. ACRE Examined

URBANA Listed below is a partial summary of differences in the new Agricultural Risk Coverage (ARC) crop insurance program within the 2014 farm bill and the 2008 farm bill’s ACRE program, according to University of Illinois researchers Carl Zulauf and Gary D. Schnitkey. (The entire article and summary of key differences and similarities in the programs can be accessed through the U of I’s farmdoc.com website.) 

* The 2008 farm bill reduced direct payment by 20 percent if a farm chose ACRE. Farms that elected ACRE were thus required to give up a known payment for an uncertain payment, but because the 2014 farm bill has eliminated direct payments, there is now no similar requirement. 

* The 2008 farm bill had no floor on the ACRE price component. It could thus decline as low as the market price declined. In contrast, the 2014 farm bill has a floor for the ARC price component that can never be less than the PLC preference price, but can be higher. 

* The 2008 farm bill utilized state yields to determine the ACRE revenue target; the 2014 farm bill uses county yield estimates to determine the ARC revenue target. ARC provides more protection against individual farm low yield.

* The 2008 farm bill reduced a crop’s loan rate by 30 percent under ACRE. The 2014 farm bill has no such provision, meaning farms electing ARC will have the same loan rates as farms electing PLC. Schnitkey and Zulauf noted that both the 2008 and 2014 farm bills gave farmers a choice between a revenue program whose target can move up and down with the market and a price program whose target is fixed for the farm bill. The decision between price and revenue programs is more balanced in the 2014 farm bill, the researchers agree. Notably, the election of the 2014 revenues program results in no difference in direct payments, a floor on the price component of the revenue target, use of county rather than state yield, and the same loan rate as the price program.

“Farmers need to appreciate the differences between the 2008 farm bill revenue price program decision and the 2014 farm bill revenue price program decision and to adjust their decisionmaking framework accordingly,” Zualuf and Schnitkey advised.

Farm Bill Streamlines Conservation Programs

CHAMPAIGN – While awaiting full implementation of the American Agricultural Act of 2014a. k.a. the farm bill Illinois State Conservationist Ivan Dozier released a statement assuring farmers that streamlined programs offered by the USDA Natural Resource Conservation Service (NRCS) would be implemented soon. 

“The (2014) Farm Bill continues to offer farmers and forest landowners the tools they need to address resource concerns while helping the environment,” said Dozier. “NRCS is moving swiftly to get the consolidated and expanded programs implemented.” Current contracts enrolled in farm bill programs are not affected and will be rolled into new provisions, Dozier added. The 2014 Farm Bill calls for around $18.7 billion in conservation program funding over the next five years, providing about $3.4 billion for fiscal 2014 for NRCS programs. Both the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP)NRCS’ keystone programs are sustained through the new farm bill. “These two programs work for Illinois farmers. They get conservation on the ground,” Dozier said. “Last year, EQIP and CSP together brought in about $16.3 million in financial assistance on nearly 280,000 acres here in Illinois. That’s why they remain in the new (farm bill’s) conservation title.” More info: www.nrcs.usda.gov/GetStarted.

USB Seeks Peoria Area Board Director

BLOOMINGTON The Illinois Soybean Association (ISA) has announced that petitions are available for farmers interested in running for open director positions with the United Soybean Board (USB), including the position of District 5 (Peoria, Fulton, Tazewell, Marshall, Knox, and Putnam counties) director. Due to a tenure provision, current USB Illinois District 5 Director Dan Farney of Morton is not eligible for reelection to the position.

Petitions can be obtained from the Illinois Department of Agriculture, local University of Illinois Extension offices or the ISA office and must be returned by May 15. Farmers also have the option of entering as a write in candidate. To serve as a director, a candidate must be an Illinois resident who lives and farms in the area they wish to represent, be of legal voting age and a contributor to the soybean checkoff program. A minimum of 155 signatures are required of District 5 candidates returning petitions for consideration. Elections for three year terms in six USB Illinois districts, including District 5, will be held July 8 at local Extension offices. (ISA news release)

Illinois Farm Fact:

As of March 31, central Illinois topsoil moisture level was estimated as 77 percent adequate. Subsoil moisture was measured as 59 percent adequate. (USDA/NASS)

(Tim Alexander is a freelance reporter who writes agriculture, news and feature articles for the News Bulletin, Farm World and many other publications.)