The 2014 Farm Bill gives landowners a one-time opportunity to reallocate base acres and update payment yield, if they so choose. This is an important decision, since the new Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs through Farm Service Agency (FSA) determine payments by commodity base acres, not actual planted acres. The reason for this “decoupling” is so planting decisions by producers will not be influenced by which commodity might receive the largest government payments in a given year. Base acres are designed to reflect the long-term average acreage of each commodity on that farm, thus equating program payments to commodity risk.
Publisher |
Kansas State University |
Publication Views |
2503 |
Material Type |
Written Material |