Deadlines near for farm programs
Producers are being reminded that two important deadlines end this month. The first is March 16, the final day to purchase coverage through the Noninsured Assistance Program (NAP).
NAP provides financial assistance to producers of noninsurable crops when low yields/grazing loss, loss of inventory or prevented planting occur due to natural disasters including drought, freeze, hail, excessive moisture, excessive wind or hurricanes.
In order to meet eligibility requirements for NAP, crops must be noninsurable, commercially produced agricultural commodity crops for which the catastrophic risk protection level of crop insurance is not available.
The Agricultural Act of 2014 (the 2014 Farm Bill) allows producers to choose higher levels of NAP coverage. Previously, the program offered coverage at 55 percent of the average market price for crop losses that exceed 50 percent of expected production. Producers can now choose higher levels of coverage, up to 65 percent of their expected production at 100 percent of the average market price. It is important to note that the higher coverage is not available on grazing crops.
The second program deadline is March 31 for producers that want to update yields and base acres then make an election into either Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC).
If no changes are made to yield history or base acres by March 31 the farm’s current yield and base will be used. A program choice of ARC or PLC coverage also must be made by March 31 or there will be no 2014 payments for the farm and the farm will default to PLC coverage through the 2018 crop year.
Covered commodities include barley, corn, grain sorghum, oats, soybeans, sunflower seed and wheat. The online tools, available at www.fsa.usda.gov/arc-plc, allow producers to explore projections on how ARC or PLC coverage will affect their operation under possible future scenarios.
To learn more, farmers can contact their local Farm Service Agency county office. To find your local office visit http://offices.usda.gov.
Luke Fritz is executive director of the Butler County Farm Service Agency.
