Updating Payment Yields: 2014 Farm Bill

Robin Reid, G. Art Barnaby, Jr., and Mykel R Taylor ( September, 2014 )

Summary

The 2014 Farm Bill gives landowners a one-time opportunity to reallocate base acres and update payment yield. Unlike the 2002 Farm Bill, which required a farmer to do both of these or nothing at all, this time the farmer has the option to update payment yields without reallocating base acres and vice versa. 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. PLC also uses established payment yield to calculate support payments, not actual yield.

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