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 Unlike the old direct payments program, which paid farmers in
good years and bad, the 2014 Farm Bill authorized a new
safety-net that protects producers only when market forces or
adverse weather cause unexpected drops in crop prices or
revenues.
Example: The corn price for 2014 is 30 percent below the
historical benchmark price used by the ARC-County program, and
revenues of the farms participating in the ARC-County program
are down by about $20 billion from the benchmark during the same
period. The nearly $4 billion provided today by the ARC and PLC
safety-net programs will give assistance to producers where
revenues dropped below normal.”
The ARC/PLC programs primarily allow producers to continue to
produce for the market by making payments on a percentage of
historical base production, limiting the impact on production
decisions.
Nationwide, 96 percent of soybean farms, 91 percent of corn
farms, and 66 percent of wheat farms elected the ARC-County
coverage option. Ninety-nine percent of long grain rice and
peanut farms, and 94 percent of medium grain rice farms elected
the PLC option. Overall, 76 percent of participating farm acres
are protected by ARC-County, 23 percent by PLC, and 1 percent by
ARC-Individual. For data about other crops, as well as
state-by-state program election results, final PLC price and
payment data, and other program information including frequently
asked questions, visit www.fsa.usda.gov/arc-plc.
Crops receiving assistance include barley, corn, grain sorghum,
lentils, oats, peanuts, dry peas, soybeans, and wheat. In the
upcoming months, disbursements will be made for other crops
after marketing year average prices are published by USDA’s
National Agricultural Statistics Service. Any disbursements to
participants in ARC-County or PLC for long and medium grain rice
(except for temperate Japonica rice) will occur in November, for
remaining oilseeds and also chickpeas in December, and temperate
Japonica rice in early February 2016. ARC-individual payments
will begin in November. Upland cotton is no longer a covered
commodity.
The Budget Control Act of 2011, passed by Congress, requires
USDA to reduce payments by 6.8 percent. For more information,
producers are encouraged to visit their local Farm Service
Agency office. To find a local Farm Service Agency office, visit
http://offices.usda.gov.
New USDA Commitments to Help Build Up Next Generation of
Farmers and Ranchers
The U.S. Department of Agriculture today announced a commitment
by the U.S. Department of Agriculture (USDA) to prioritize $5.6
billion over the next two years within USDA programs and
services that serve new and beginning farmers and ranchers.
Deputy Secretary Harden also announced a new, tailored web tool
designed to connect burgeoning farm entrepreneurs with programs
and resources available to help them get started.
The new web tool is available at www.usda.gov/newfarmers. The
site was designed based on feedback from new and beginning
farmers and ranchers around the country, who cited unfamiliarity
with programs and resources as a challenge to starting and
expanding their operations. The site features advice and
guidance on everything a new farm business owner needs to know,
from writing a business plan, to obtaining a loan to grow their
business, to filing taxes as a new small business owner. By
answering a series of questions about their operation, farmers
can use the site’s Discovery Tool to build a personalized set of
recommendations of USDA programs and services that may meet
their needs.
Using the new web tool and other outreach activities, and
operating within its existing resources, USDA has set a new goal
of increasing beginning farmer and rancher participation by an
additional 6.6 percent across key USDA programs, which were
established or strengthened by the 2014 Farm Bill, for a total
investment value of approximately $5.6 billion. Programs were
targeted for expanded outreach and commitment based on their
impact on expanding opportunity for new and beginning farmers
and ranchers, including starting or expanding an operation,
developing new markets, supporting more effective farming and
conservation practices, and having access to relevant training
and education opportunities. USDA will provide quarterly updates
on its progress towards meeting its goal. A full explanation of
the investment targets, benchmarks and outcomes is available at:
BFR-Commitment-Factsheet.
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As the average age of the American farmer now exceeds 58 years,
and data shows that almost 10 percent of farmland in the
continental United States will change hands in the next five
years, we have no time to lose in getting more new farmers and
ranchers established. Equally important is encouraging young
people to pursue careers in industries that support American
agriculture. According to an employment outlook report released
by USDA’s National Institute of Food and Agriculture (NIFA) and
Purdue University, one of the best fields for new college
graduates is agriculture. Nearly 60,000 high-skilled agriculture
job openings are expected annually in the United States for the
next five years, yet only 35,000 graduates with a bachelor’s
degree or higher in agriculture related fields are expected to
be available to fill them. The report also shows that women make
up more than half of the food, agriculture, renewable natural
resources, and environment higher education graduates in the
United States. USDA recently released a series of fact sheets
showcasing the impact of women in agriculture nationwide.
Today’s announcement builds on USDA’s ongoing work to engage its
resources to inspire a strong next generation of farmers and
ranchers by improving access to land and capital; building
market opportunities; extending conservation opportunities;
offering appropriate risk management tools; and increasing
outreach and technical support. To learn more about USDA’s
efforts, visit the Beginning Farmers and Ranchers Results Page.
USDA Extends Deadline to Increase Protections for Forage Crop
Losses
The USDA Farm Service Agency (FSA) deadline for producers to
obtain or modify higher levels of coverage through the
Noninsured Crop Disaster Assistance Program (NAP) to protect
against poor forage crop quality because of drought or other
natural disasters where the forage is intended for mechanical
harvest has been extended to Nov. 13, 2015.
For some 2016 forage crops, the application deadline for NAP
occurred before information became available to measure losses
due to quality that could influence loss payments, so the
deadline was extended so that producers have more time to decide
what type of modified coverage works best for their operation.
The Noninsured Crop Disaster Assistance Program protects
agricultural crops for which crop insurance is not available
from losses due to natural disasters, such as drought, freeze,
hail, excessive moisture, excessive wind or hurricanes. The
program offers basic coverage at 55 percent of the average
market price for crop losses exceeding 50 percent of expected
production, and higher levels of coverage, up to 65 percent of
expected production at 100 percent of the average market price.
Higher coverage is not available on grazing crops. However, the
extension does not afford producers the opportunity to purchase
basic 50/55 NAP coverage.
Producers interested in adjusting their NAP coverage must submit
the appropriate paperwork to their local FSA county office
before the Nov. 13 deadline. To find your local USDA Service
Center go to http://offices.usda.gov. For more details on the
Noninsured Crop Disaster Assistance Program, visit
www.fsa.usda.gov/nap.
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