USDA program benefits are now being released
Oct. 1 was the start of the 2017 fiscal year for the Farm Service Agency. So with the start of the new year, program benefits are now being released to participants.
What that means for local farmers is that the 2016 annual Conservation Reserve Enhancement Program payments are being issued, along with any applicable payments for producers enrolled in the 2015 Agricultural Risk Coverage-County (ARC-CO) or Price Loss Coverage (PLC) Farm Bill programs.
These three U.S. Department of Agriculture programs are probably the most popular Farm Bill programs to local producers.
CREP is popular for many as it protects environmentally sensitive land along with highly erodible land. CREP participants signed either a 10- or 15-year contract and must comply with the conservation plan for the acreage in exchange for an annual rental payment each year of the contract.
ARC-CO and PLC are Farm Bill programs for grain producers. The ARC-CO program provides coverage for revenue losses at the county level.
ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.
PLC payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity.
The effective price equals the higher of the market year average price or the national average loan rate for the covered commodity.
Eligible producers may enroll in the 2017 ARC/PLC programs from Nov. 1 through Aug. 1.
Luke Fritz is executive director of the Butler County Farm Service Agency.
