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PFA Pioneer Blog

RSS By: Chip Flory, Pro Farmer

This is a private blog for Pioneer.

Ag Panels clear farm bill proposals

May 17, 2013

Pro Farmer Extra

- From the Editors of Pro Farmer newsletter -

May 17, 2013

Farm bills move out of committee

Pro Farmer Associate Editor Meghan Pedersen and Washington Consultant Jim Wiesemeyer did a great job of summarizing the House and Senate versions of the 2013 farm bill in this week's Pro Farmer newsletter. Following is there comparison of the Commodity Titles in the two bills.

Senate Ag Panel safety net:

  • Eliminates direct payments, ACRE and SURE.


  • You can enroll same acres in both Adverse Market Payments (AMP) and Ag Risk Coverage (ARC) programs, with optional Supplemental Coverage Option (SCO).



  • ARC, a “shallow loss” revenue protection plan, makes payouts based on full market-year price triggered by revenue loss of at least 12%. Payouts based on planted acres, up to average acres planted 2009-12, with a one-time choice between farm- and county-level coverage.



  • AMP target-price-based program, with protection limited to 85% of base acres. Target (reference) price levels are below the House.



  • New Stacked Income Protection (STAX) plan implemented beginning with 2014 cotton crop. No reference price.


House Ag Panel safety net:

  • Eliminates direct payments, ACRE and SURE.



  • Offers choice between Revenue Loss Coverage (RLC) or Price Loss Coverage (PLC), with optional SCO.



  • County-level RLC payments based on planted acres, limited to base acres, using midseason price for determining payments paid in October.



  • PLC target price protection based on 85% of planted acres up to base acres. Higher target price levels than the Senate.



  • Offers “transition payments” to cotton producers to boost safety net for 2014 and 2015 crops, even if STAX is available those years. These are calculated at 6.667¢ per pound on 70% of base acres for 2014 and 60% for 2015 crop. No reference price.


Comparison and implications:

The Senate will eventually have to boost its savings level and some key ARC provisions may change later in the farm bill process. The Senate bill favors Midwest and northern Corn Belt growers as ARC spending accounts for almost 90% of Title I spending. The House farm bill is more balanced regarding its choice between RLC and PLC.

Follow Pro Farmer Editor Chip Flory on Twitter: @ChipFlory

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