During a breakout at the 2015 Tomorrow’s Top Producer, The Farm CPA Paul Neiffer shared insights about the 2014 farm bill and crop insurance.
Here are key numbers to know from his presentation:
- ARC-IC is at a 23% disadvantage to ARC-CO (farmers yields should be at least 25% higher than county average or optimum mix of crops.
- In addition to major row crops, Price Loss Coverage reference prices include minor oilseeds ($20.15 per cwt.), dry peas ($11), lentils ($19.97), small chickpeas ($19.04) and large chickpeas ($21.54)
- Five years comprise an Olympic yield average—the high and low prices are eliminated from the equation, and the remaining three years are averaged together.
- If you’re an average corn grower, go with ARC-CO. You’re guaranteed $5.29 Olympic average price for 2014 and, likely, 2015.
- One of two camps: Either maximize your revenue, leaning 90%-plus toward ARC. Or if you firmly believe corn will average less than $3 per bushel over the next five years, PLC might be the right choice.
For more information on the Top Producer Seminar or Tomorrow’s Top Producer events, visit www.TopProducerSeminar.com.
Thank you to the 2015 Tomorrow’s Top Producer sponsors:
Bayer CropScience, Case IH, Conservis