New Farm Program Discussed at Twelve Farmland Leasing Meetings

Iowa State University Extension

Iowa State University Extension

ALTOONA, Iowa ― Iowa State University Extension and Outreach is conducting farmland leasing meetings across 12 different sites in Central Iowa during late July and August.

Among with current issues related to farmland ownership, management, and leasing agreements; the meetings will also cover the New Farm Programs: Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) election and enrollment decisions involving farmland owners and operators.

To protect farmers from multiple year downturns in cash prices or a decline in revenue, the new farm program introduces these two new programs. Farmers will choose between a revenue program that covers price and yield losses — ARC and a price-only program known as PLC. Landowners need to make a one-time irrevocable decision to elect either the ARC or PLC program for the five-year period 2014 through 2018.

Owners of farms who participate in ARC or PLC programs for 2014 to 2018 covered commodities also have a one-time opportunity to:

1) maintain the farm’s 2013 base acres (historic base), or

2) reallocate the farm’s base acres on the farm using the 2009 to 2012 actual planted acres for each commodity crop.

The total numbers of base acres on a farm cannot exceed the total 2013 base acres.

The option to retain or reallocate base acres is an “all or nothing” decision. Partial retention or reallocation or bases is not permissible. Base acres may be restored for Conservation Reserve Program contracts that expire, are voluntarily terminated, or released early.

An owner may also want to take the opportunity to update the program payment yield for each covered commodity crop on a farm. This new PLC yield will be based on 90% of the farm’s 2008 to 2012 average yield per planted acre, excluding any year when no acreage was planted of the covered commodity. If any of the annual yields for these five years are less than 75% of the county average yield, they can substitute that yield in the calculation. Program payment yields are used to determine payment amounts for PLC. Note that PLC yields may be updated for all farms, regardless of the program election.

Meeting sites include Oskaloosa, Boone, Altoona, Nevada, Grinnell, Knoxville, Adel, Newton, Indianola, Traer, Marshalltown and Winterset and are coordinated by county ISU Extension and Outreach offices. The meetings will last approximately three hours and will be facilitated by Steve Johnson, farm and agriculture business management specialist with ISU Extension and Outreach.

Pre-registration is required at least two days before the leasing meeting and a $20 per individual or $30 per couple fee is payable at the door. Registrants will also receive a 100-page booklet containing farmland leasing information.

Contact your local County Extension office to find more details about an upcoming farmland leasing meeting. For a list of meetings statewide, check the ISU Extension calendar for a complete list of meeting dates and locations near you at www.extension.iastate.edu/calendar. ​

Posted by on Jul 16 2014. Filed under Events, News. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.

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