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October 2013 Archive for PFA Pioneer Blog

RSS By: Chip Flory, Pro Farmer

This is a private blog for Pioneer.

Planted or base acres?

Oct 25, 2013

Pro Farmer Extra

- From the Editors of Pro Farmer newsletter -

October 18, 2013

Note: The following is from this week's issue of Pro Farmer newsletter and was written by Pro Farmer editor Chip Flory and Pro Farmer Washington Consultant Jim Wiesemeyer.


Planted or base acres for payments?
 

Contacts continue to signal there are four major issues in the negotiation of a new safety net program in the 2013 farm bill:

  • Parameters of Price Loss (target prices) Coverage program.
  • Parameters of the Revenue Loss Coverage (Ag Risk Coverage/Shallow Loss) program.
  • Parameters of the Supplemental Coverage Option (SCO).
  • Whether to use planted or base acres in calculating payments. Negotiators have so far failed to find a compromise.
     

Senate negotiators continue to push for an “all-in” approach to safety net programs in which producers would qualify for both revenue and price loss coverage, but if a producer wanted SCO, they could not qualify for revenue loss coverage. The key for an all-in approach is the target price levels.
 

 

First farm bill conference meeting Oct. 30.

The House and Senate Ag Committee leaders will hold the first public meeting of the 2013 farm bill conference committee Oct. 30 at noon CT. Recent reports not conservative groups will focus their budget-cutting attention on subsidies in the bill, including crop insurance and nutrition programs.
 


 



 

Follow Pro Farmer Editor Chip Flory on Twitter: @ChipFlory


To see more of what Pro Farmer has to offer, be sure to visit www.profarmer.com.

Push is on to get to farm bill end zone

Oct 18, 2013

Pro Farmer Extra

- From the Editors of Pro Farmer newsletter -

October 18, 2013

Note: The following is from this week's issue of Pro Farmer newsletter and was written by Pro Farmer editor Chip Flory and Pro Farmer Washington Consultant Jim Wiesemeyer.


Push is on to get to farm bill end zone
 

 

Official farm bill conference committee meetings won’t happen until the week of Oct. 28, but the heavy lifting has started. The goal: Start conference with a framework agreement.

SNAP spending will be worked out by House and Senate leaders, the Obama admin. and USDA Sec. Tom Vilsack. That leaves several unsettled issues for the farm safety net.

  • Sen. Ag Chairwoman Debbie Stabenow (D-Mich.) wants farm safety net payments on base acres. House Ag Chairman Frank Lucas (R-Okla.) prefers planted acres up to base. The ability to update base acres seems unlikely.
  • Stabenow is pushing for an “all-in” approach to the safety net, allowing farmers to qualify for both revenue (shallow loss) and price loss (target price) protection.
  • The all-in approach is possible if agreement can be reached on target prices. Compromise is needed with Senate-proposed target prices well below House-proposed targets.
  • Odds are declining for supply-management in the dairy program. In discussion — a combination of a modified MILC program at a set production level with a gross margin program, including a “feed adjuster” component.
  • A conservation compliance linkage to crop insurance cannot be ruled out. House opposes it, but it could be included if farmers are given time to comply without penalty and if insurance agents are not tasked with verifying compliance.
     


 



 

Follow Pro Farmer Editor Chip Flory on Twitter: @ChipFlory


To see more of what Pro Farmer has to offer, be sure to visit www.profarmer.com.

No October Crop Production Report - yet

Oct 11, 2013

Pro Farmer Extra

- From the Editors of Pro Farmer newsletter -

October 11, 2013

Note: The following is from this week's issue of Pro Farmer newsletter and was written by Pro Farmer editor Chip Flory.


No October Crop Production Report... yet
 

The government shutdown at best postponed delivery of the October Crop Production Report. At worst it could cancel the report. We believe USDA’s National Ag Statistics Service will deliver Oct. 1 estimates based on data collected ahead of the Oct. 1 shutdown. When? Probably before the end of the month, but it depends on when the government reopens.

Looking ahead —

There is data (partial?) available for an Oct. 1 crop estimate, but what concerns us most is data being lost for the November Crop Production Report. USDA enumerators are instructed, “As farmer harvest of the sample field nears, close contact must be maintained with the operator. Final pre-harvest observations should be made as close to harvest as possible.”

A four-day rain delay in areas of the Midwest will limit the impact of lost “final pre-harvest” observations, but with enumerators off the job, some of the objective yield plots have likely been harvested and the pre-harvest sample was lost.

Another concern is the measure of harvest loss. That’s the grain left on the ground after harvest. The enumerator’s handbook includes instructions to “Keep in touch with the farmer so you will know when harvest is completed in the sample field designated for postharvest observation. Glean the sample units immediately after harvest so that they are not disturbed by birds and rodents or destroyed by plowing."

Lost data = uncertainty

We’re asking officials how potential lost data might impact upcoming crop estimates. Lost yield data only lowers the reliability of crop estimates. That means another year of uncertainty about total corn and soybean supplies.
 



 

Follow Pro Farmer Editor Chip Flory on Twitter: @ChipFlory


To see more of what Pro Farmer has to offer, be sure to visit www.profarmer.com.

The shutdown's impact on USDA Reports

Oct 04, 2013

Pro Farmer Extra

- From the Editors of Pro Farmer newsletter -

October 4, 2013

Note: The following is the latest update filed on www.profarmer.com by Pro Farmer Washington Consultant Jim Wiesemeyer. Jim's daily comments are featured on the Pro Farmer website under the column, "Inside Washington Today."


Release of USDA's Crop Production and Supply/Demand reports, currently scheduled for Friday, Oct. 11, remains an uncertainty at this point with USDA shuttered and no signals from the agency on whether it will have to be rescheduled or not.

Heading into the shutdown, sources with USDA's National Ag Statistics Service (NASS) said if the shutdown were to last only "a day or two" then the report would likely be able to be released as scheduled. But if the shutdown were to last longer than that, sources said it may necessitate pushing back the release date.

Objective yield data gathering was to run through Oct. 2, according to contacts, with the farmer survey portion of the data collection scheduled to run through Oct. 7. With the shutdown, that halted data gathering on both fronts which means the agency still would need to finish the work on both the objective yield and farmer survey portions.

That is just the data gathering side without any of the usual timeframe used to compile the data at the state level and send it in an encrypted form to the NASS headquarters in Washington.

"I'd said there's an outside chance you could see the data still released on Oct. 11, but that would take the government shutdown basically ending over the weekend," said one long-time market watcher, adding that seemed unlikely given the entrenched positions on both sides.

Any delay in releasing the Crop Production report would also mean a delay in the Supply/Demand report as that utilizes the survey-based production estimate generated by NASS for its balance sheets.

In addition, there is the matter of certified acreage data from the Farm Service Agency (FSA), which given the shutdown, has not been updated to reflect the latest information.

Comments: Unlike the prior government shutdown in 1995 and 1996, USDA is shuttered this time around as they did receive their appropriations on time during the 1995-1996 shutdown to be able to publish the Annual Production Summary, Winter Wheat Seedings and other reports as scheduled.
 



 

Follow Pro Farmer Editor Chip Flory on Twitter: @ChipFlory


To see more of what Pro Farmer has to offer, be sure to visit www.profarmer.com.

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