Covered Commodities

• Wheat, Oats, Barley, Corn, Grain Sorghum, Long Grain Rice, Medium Grain Rice, Pulse Crops, Soybeans, Other Oilseeds and Peanuts

– Other Oilseeds

• Sunflower seed, Rapeseed, Canola, Safflower, Flaxseed, Mustard Seed, Crambe, Sesame Seed, or any oilseed designated by the Secretary

– Pulse Crops

• Dry peas, Lentils, Small Chickpeas and Large Chickpeas

Choose ARC

Choose PLC

County

Ch

oic

e B

etw

ee

nA

RC

an

d P

LC

Base Reallocation

Decision

Can choose to Update Payment

Yield

Individual

Beginning in 2015 can choose SCO insurance option

Flow Chart of Title I Producer Choices for Covered Commodities (Does Not Include Upland Cotton)

• This decision is on a crop by crop basis for each farm unless the producer chooses individual ARC then it is for all the crops on that farm.

• If all parties cannot agree on the ARC/PLC choice then the farm would not be enrolled in ARC or PLC for the 2014 crop and the farm would automatically be enrolled in PLC for the 2015 crop and beyond.

Crop Insurance

Title XITitle I

Who Makes The Decisions?

• Base reallocation• As soon as practicable after the date of enactment of this Act, the Secretary

shall provide notice to the owners of a farm regarding their opportunity to make an election

• Yield Update• At the sole discretion of the owner of a farm, the owner of a farm shall have a

1-time opportunity to update, on a covered commodity-by-covered-commodity basis, the payment yield that would otherwise be used in calculating any price loss coverage payment for each covered commodity on the farm for which the election is made.

• POA’s on file will be honored according to FSA

Who Makes The Decisions? (Cont.)

• ARC or PLC- For the 2014 through 2018 crop years, all of the producers on a

farm shall make a 1-time, irrevocable election to obtain—- (1) price loss coverage under section 1116 on a covered commodity-by-

covered-commodity basis; or

- (2) agriculture risk coverage under section 1117.

IN GENERAL.—The term ‘‘producer’’ means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of pro-ducing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.

This decision stays with the farm for the life of the farm bill

Sign-up Timeline

Annual Sign-up

Fix Planted Acres with FSA

Reallocate Bases & Update Yields

Choice Between ARC & PLC

August 2014

June2015Sept Oct Nov Dec Jan Feb March April May

17th 31st

Mid Summer??29th 27th

Cotton Transition Assistance Program (CTAP) Deadline for the 2014 crop year was October 7th

Dairy Margin Protection Program for 2014 and

2015

2nd Dec 19

Year Corn Corn Corn

2008 DNP No Records 95

2009 88 No Records 100

2010 120 No Records 120

2011 100 110 130

2012 150 120 120

Substitute Yield 70 70 70

2013 CC Yield 90 90 90

Yield Updating

Could Update to: (88 + 120 + 100 + 150)/4 * .9 =103

Farmer SmithOn Farm 5 Yrs

Farmer JonesOn Farm 2 Yrs

(70 + 70 + 70 + 110 + 120)/5 * .9 =79

Farmer BrownOn Farm 2 Yrs

Ob

tain

ed F

rom

Pri

or

Ten

ant

(95 + 100 + 120 + 130 + 120)/5 * .9 =102

FSA

lett

er in

dic

ates

5 y

ears

of

corn

pla

nte

d

Cotton Corn Sorghum Soybeans Wheat Total

Base a/ 500 0 0 0 500 1,000

Plantings

2009 200 600 100 100 0 1,000

2010 200 600 100 100 0 1,000

2011 200 600 100 100 0 1,000

2012 200 600 100 100 0 1,000

Average 200 600 100 100 0 1,000

Generic Base 500 500

Share 75% 12.5% 12.5% 0%

Reallocated Base 375 62.5 62.5 0 500

Source: House Agriculture Committee Staff

Base Reallocation Example

With Cotton

Generic Base Allocation

100 Acre Farm Base Acres: 5 each of Sorghum, Wheat, Corn, Peanuts and 80 Generic

Was Cotton - Now Generic Base – 80 acres

Sorg

hu

m –

5 a

cres

Wh

eat

-5

acr

es

Co

rn -

5 a

cres

Pean

uts

–5

acr

es

Generic Base - 2014

100 Acre Farm – Base Acres: 5 each of Sorghum, Wheat, Corn, Peanuts and 80 Generic

If farmer plants 50 acres of wheat and 50 acres of sorghum

Farmer has protection on 45 acres of sorghum & wheat and 5 acres each of corn & peanuts

Sorghum - 45 acres

Original 5 acres plus 40

Wheat – 45 acres

Original 5 acres plus 40

Co

rn

Pean

uts

80 generic

40 and 40

Generic Base - 2015

100 Acre Farm – Base Acres: 5 each of Sorghum, Wheat, Corn, Peanuts and 80 Generic

Farmer has protection on 85 acres of sorghum and 5 acres each of wheat, corn and peanuts

Sorghum - 85 acres

Original 5 acres plus 80 Wh

eat

–5

acr

es

Co

rn –

5 a

cres

Pean

uts

–5

acr

es

80 generic

100% tosorghum

If farmer plants 100 acres of sorghum

Generic Base - 2016

100 Acre Farm – Base Acres: 5 each of Sorghum, Wheat, Corn, Peanuts and 80 Generic

Generic Base – 80 acres idled for the year

Farmer has protection on 5 acres each of sorghum, wheat, corn and peanuts

Sorg

hu

m –

5 a

cres

Wh

eat

-5

acr

es

Co

rn -

5 a

cres

Pean

uts

–5

acr

es

If farmer plants 100 acres of cotton

80 generic

No coveredCommodity

Plantedto

AllocateGenericacres to

Generic Base - 2017

100 Acre Farm – Base Acres: 5 each of Sorghum, Wheat, Corn, Peanuts and 80 Generic

If farmer plants 50 acres of sorghum and 50 acres of cotton

Farmer has protection on 55 acres of sorghum and 5 acres each of wheat, corn and peanuts

Sorghum - 55 acres

Original 5 acres plus 50 W

he

at –

5 a

cres

Co

rn –

5 a

cres

Pean

uts

-5

acr

es

80 generic

AllocatedTo Sorghum

On a acrefor acre

BasisSo

50 addedTo

Sorghumand 30 idled

Idled Generic Baseacres

30 acres

Generic Base - 2018

100 Acre Farm – Base Acres: 5 each of Sorghum, Wheat, Corn, Peanuts and 80 Generic

Soybean base – 80 acres(FSA will assign a payment yield if PLC

was elected for soybeans on the farm.)

Farmer has protection on 80 acres of soybean, 5 acres each of sorghum, wheat, corn and peanuts

Sorg

hu

m –

5 a

cres

Wh

eat

-5

acr

es

Co

rn -

5 a

cres

Pean

uts

–5

acr

es

If farmer plants 100 acres of soybean

80 generic

80 acresSoybean

Covered Subcategory Units Marketing Year 2014 - 2018 2014 - 2018

Commodity Reference Price Loan Rate

Wheat Bushels June 1 - May 31 5.50$ 2.94$

Barley Bushels June 1 - May 31 4.95$ 1.95$

Oats Bushels June 1 - May 31 2.40$ 1.39$

Corn Bushels Sept 1 - Aug 31 3.70$ 1.95$

Grain Sorghum Bushels Sept 1 - Aug 31 3.95$ 1.95$

Rice Medium Grain Hundredweight Aug 1 - July 31 14.00$ 6.50$

Long Grain Hundredweight Aug 1 - July 31 14.00$ 6.50$

Japonica Hundredweight Aug 1 - July 31 16.10$ 6.50$

Other Oilseeds Canola Hundredweight July 1 - June 30 20.15$ 10.09$

Flaxseed Hundredweight July 1 - June 30 20.15$ 10.09$

Rapeseed Hundredweight July 1 - June 30 20.15$ 10.09$

Sunflower Hundredweight Sept 1 - Aug 31 20.15$ 10.09$

Mustard seed Hundredweight Sept 1 - Aug 31 20.15$ 10.09$

Safflower Hundredweight Sept 1 - Aug 31 20.15$ 10.09$

Crambe Hundredweight Sept 1 - Aug 31 20.15$ 10.09$

Sesame Hundredweight Sept 1 - Aug 31 20.15$ 10.09$

Soybeans Bushels Sept 1 - Aug 31 8.40$ 5.00$

Peanuts Ton Aug 1 - July 31 535.00$ 355.00$

Pulse Crops Dry Peas Hundredweight July 1 - June 30 11.00$ 5.40$

Lentils Hundredweight July 1 - June 30 19.97$ 11.28$

Small Chickpeas Hundredweight Sept 1 - Aug 31 19.04$ 7.43$

Large Chickpeas Hundredweight Sept 1 - Aug 31 21.54$ 11.28$

Producer Price Outlook a Factor in ARC/PLC Decision (Corn Ex.)

5.29 5.29

4.85

4.083.92

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/b

u

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Soybeans Ex.)

12.27 12.27

11.84

10.86

9.84

6.00

8.00

10.00

12.00

14.00

16.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/b

u

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Wheat Ex.)

6.606.71 6.71

6.13

5.67

4

4.5

5

5.5

6

6.5

7

7.5

8

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/b

u

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Grain Sorghum Ex.)

5.10 5.10

4.74

4.063.95

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/b

u

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Long Grain Rice Ex.)

14.17 14.17 14.17 14.1714.00

10.00

11.00

12.00

13.00

14.00

15.00

16.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Med. Grain Rice Ex.)

15.1314.90 14.78 14.78

14.65

10.00

11.00

12.00

13.00

14.00

15.00

16.00

17.00

18.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Barley Ex.)

5.455.56 5.56

5.42

5.05

3

3.5

4

4.5

5

5.5

6

6.5

7

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/b

u

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Oats Ex.)

3.25

3.49 3.49

3.32

3.06

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

4

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/b

u

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Peanuts Ex.)

557.33 557.33 557.33

535.00 535.00

350

400

450

500

550

600

650

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/t

on

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Sunflower seed Ex.)

23.37 23.37

22.38

20.6320.32

10

12.5

15

17.5

20

22.5

25

27.5

30

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Canola Ex.)

21.58 21.58 21.58

20.30 20.15

15

17.5

20

22.5

25

27.5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Flaxseed Ex.)

23.69 23.69 23.54

22.18

20.97

14

16

18

20

22

24

26

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Lentils Ex.)

23.80

22.76

21.23

20.61 20.78

14

16

18

20

22

24

26

28

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Safflower Ex.)

24.05

25.21 25.2124.67

23.23

15

17.5

20

22.5

25

27.5

30

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Mustard seed Ex.)

33.2733.70 33.70

32.58

30.94

15

20

25

30

35

40

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Dry Peas Ex.)

13.6313.88 13.88

12.74

11.93

8

9

10

11

12

13

14

15

16

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Rapeseed Ex.)

25.83

24.87 24.87

23.68

23.05

16

18

20

22

24

26

28

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Lg. Chickpeas Ex.)

33.20 33.2032.45

28.58

27.19

20

25

30

35

40

45

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Sm. Chickpeas Ex.)

21.73 21.78 21.78

21.09

20.13

15

17

19

21

23

25

27

29

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Crambe Ex.)

36.13

34.80 34.77

32.85

31.64

15

20

25

30

35

40

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Sesame seed Ex.)

32.53

37.00

40.60

43.4344.01

15

20

25

30

35

40

45

50

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

Producer Price Outlook a Factor in ARC/PLC Decision (Japonica Rice Ex.)

19.5319.68

19.21 19.21 19.28

13

14

15

16

17

18

19

20

21

22

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$/cw

t

Feb. 2015 FAPRI Prices

Benchmark Price

86%

76%

Ref Price

PLC and ARC

PLC ARC

Payment Trigger Reference Price Revenue Benchmark

Paid on Base Acres Yes Yes

Paid on Payment Yield

Yes No

Payment Trigger Fixed

Yes, Fixed throughout Farm Bill

Adjusts each yearwith Price and yield

Max PaymentFrom Reference to Loan

rate10% of Benchmark