Ag Policy Blog

One More ARC-PLC Analysis as Base Acre Deadline Looms

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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I headed out the door Monday to spend most of Tuesday traveling to Phoenix for Commodity Classic.

I did check with the Farm Service Agency on Monday about the approaching deadline for farmers/landowners to update base acres and yields with FSA offices. The deadline to make an appointment and do so is Friday, Feb. 27. An FSA spokesman told me Monday that the agency is not planning for an extension on that deadline. FSA declined to release information on the number of farms that made adjustments to base.

Moving on to ARC and PLC, Gary Schnitkey at the University of Illinois updated estimated ARC-County and PLC payments for the 2014 crop with an analysis posted Tuesday. The maps show the haves and have-nots for counties when it comes to payments on ARC-CO. Northern sections of the Corn Belt are going to collect significantly higher payments than in the south. For PLC, using a $3.65 market year average as the midpoint price for PLC payments, those would largely be below $10 per acre for most farmers.

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For soybeans and wheat, right now neither program looks to generate payments more than $1 an acre across most states. Kansas wheat and soybean base acres for sporadic counties across the country would be exceptions to the rule there.

Schnitkey's summary: "ARC-CO will make payments for corn in many counties. Some counties will receive ARC-CO payments for soybeans and wheat in 2014. PLC may make modest payments for corn in 2014, but it is extremely unlikely that PLC will make payments for soybeans and wheat."

The deadline to sign up for ARC-PLC is March 31. Unlike the base-acre decision, this one has a penalty for not doing so. Producers who do not sign up their base acres by the deadline would not be eligible for any payment on the 2014 crop and those acres would automatically be enrolled in PLC for the rest of the farm bill.

http://farmdocdaily.illinois.edu/…

Follow me on Twitter @ChrisClaytonDTN.

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