Seminole Crop E News

Agricultural News for Farmers and Agribusiness in SW Georgia

Farm Program Update

Posted by romeethredge on July 22, 2015

Farm Program Update from Dr Nathan Smith, UGA Extension Ag Economist

HIP Provision Rescinded

On Monday, July 6, FSA released notice CM-770 providing notification that the policy requiring covered commodities to have similar HIP’s for farms to be combined is now rescinded.   HIP stands for Historical Irrigation Percentage and applies to the ARC-CO program in HIP counties where at least 25% of a commodity’s acreage is irrigated and 25% non-irrigated.  Commodity groups worked with FSA to take another look at the policy due to concerns that it would effectively eliminate combinations of farms and create problems with crop rotations if producers couldn’t combine farms because of different HIP’s.

No PLC Payment on 2014 Barley, Oats or Wheat

The June 30 Agricultural Prices report showed final 2014 season average price for small grains.   The final prices for barley, oats and wheat are above the Reference Price, thus not triggering a PLC payment for the 2014 crop.  Peanuts project a payment rate of $95.73 per ton before the 85% payment factor and any sequestration subtracted.   Corn could have a zero or small PLC payment while grain sorghum and soybeans will not trigger a PLC payment for 2014 crop year.   However, ARC-CO payments should trigger for most counties based on price.

2014 Marketing Year Average Price

Commodity Marketing Year Reference Price 2014 MYA Price PLC Rate*
Barley Jun. 1-May 31 $4.95 $5.30 $0.00
Oats Jun. 1-May 31 $2.40 $3.21 $0.00
Wheat Jun. 1-May 31 $5.50 $5.99 $0.00
Peanuts Aug. 1-Jul. 31 $535 $439.27 $95.73
Corn Sep. 1-Aug. 31 $3.70 $3.69 $0.01
Grain Sorghum Sep. 1-Aug. 31 $3.95 $7.27 $0.00
Soybeans Sep. 1-Aug. 31 $8.40 $10.08 $0.00

Source:  NASS Agricultural Prices and Peanut Prices Reports

*Peanuts, Corn, Sorghum and Soybeans estimated PLC rate through June 30, 2015.

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