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2013 Farm Bill

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finna
13 diapositives · 288 Views · Oct 22, 2014

This presentation covers the 2013 Farm Bill developments and revisions made by the House and Senate. Key changes include the elimination of direct payments and the reestablishment of livestock disaster programs. The bill introduces revenue-based support programs, ARC or RLC, as replacements for ACRE, and outlines reference prices for various crops. It also discusses additional policies like the Supplemental Coverage Option (SCO) aimed at providing coverage for "shallow losses." For further insights and details, please visit the provided resources.

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2013 Farm Bill
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  1. 2013 Farm Bill ISU Extension Farm Management In-service Nashua, Iowa May 20, 2013 Chad Hart Associate Professor/Crop Markets Specialist chart@iastate.edu 515-294-9911

  2. Farm Bill Progress? • House and Senate have basically revived their packages from last year • A couple of new wrinkles have been added to address specific crop concerns • Like last year, the key will be the floor vote in the House (which didn’t happen last year)

  3. Ideas on the Next Farm Bill • Let’s look at the common features • Both versions of the farm bill eliminate direct payments, countercyclical payments, ACRE, and SURE • The marketing loan program would continue • Livestock disaster programs would be reestablished

  4. Reference Prices Senate: 55% of 5-yr Olympic average MYA price House: Set by law Corn $3.70 Wheat $5.50 Soybean $8.40

  5. ARC or RLC instead of ACRE Revenue-based support program Revenues based on 5-year Olympic averages for yields and prices Yields and prices have cups (T-yields and reference prices)

  6. Revenue Programs

  7. Revenue Programs

  8. AMP or PLC instead of CCP Price-based support program Reference prices establish targets Works like CCP Payment rate = Max(0, Reference price – Max(MYA price, Loan rate))

  9. Price Programs

  10. Dairy • Dairy Producer Margin Protection Program • Voluntary margin coverage, with the opportunity for supplemental coverage • Dairy Market Stabilization Program • Managed supplies when margins fall • Packages are very similar across the House and Senate versions

  11. Supplemental Coverage Option (SCO) • An additional policy to cover “shallow losses” • Shallow loss = part of the deductible on the producer’s underlying crop insurance policy • SCO is county-level yield or revenue policy • Indemnities are paid when the county experiences losses greater than 10% of the expected yield or revenue level, but payments are not more than the original deductible

  12. SCO Examples from Last Year’s Bills Source: Congressional Research Service

  13. Thank you for your time!Any questions?My web site:http://www.econ.iastate.edu/~chart/Iowa Farm Outlook:http://www.econ.iastate.edu/ifo/Ag Decision Maker:http://www.extension.iastate.edu/agdm/