Farm management takes many faces, from managing your farm’s finances to reacting to agricultural legislation. To shed light on the 2014 Farm Bill and help growers understand their options, Doug Yoder, senior director of marketing and affiliate management with the Illinois Farm Bureau(IFB), is leading nearly 90 informational meetings throughout Illinois.
In the fifth episode of “Management Matters: Focus on Profitability,” Yoder shares his knowledge on the 2014 Farm Bill, explaining its deadlines, programs and how growers can learn more.
Mark your calendar for top Farm Bill deadlines:
- February 27: Reallocate base acreage and update payment yields at your FSA office.
- March 31: Select your safety net option.
Key takeaways:
- The Farm Bill calls for one-time, irrevocable decisions that will last for the duration of the bill—at least five years.
- Decisions made under the 2014 Farm Bill will affect your income and protection for at least five years, so start evaluating your options now to prevent an overwhelming, last-minute decision.
- Landowners have an opportunity to update their base acreage and payment yields. These numbers, rather than yearly production, determine Farm Bill program payments.
- Growers can decide whether to change base acreage after selecting a safety net program because base acreage may change payment levels.
- Updating your payment yield by calculating the numbers per crop per farm.
- There are three key safety net options:
- Price Loss Coverage (PLC)
- Revenue-based option
- County-Level ARC
- Individual Farm-Level ARC
- Producers, not landowners, make the ultimate decision on their safety net.
Steps to making your decisions:
- Update your payment yields.
- Attend a meeting hosted by the Illinois Farm Bureau, the University of Illinois or the FSA to learn about your safety net options.
- Use an online calculator, such as those from the University of Illinois and Texas A&M University, to enter your farm numbers and your region, and to ultimately determine the best option for your operation.
Want to learn more? Stay tuned for the next episode of “Management Matters,” and read our previous posts for additional insights into farm profitability:
- “How to Stay Profitable in Uncertain Times” with Mike Boehlje
- “Keys to Effective Succession Planning” with Kevin Spafford
- “Evaluating Your Choices in the 2014 Farm Bill” with Nick Paulson
- “Boosting Profitability in Times of Low Prices” with David Kohl
About the Author: Illinois Soybean Association
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