Farmers Encouraged to Think About Risk Management Needs

The National Corn Growers Association is urging farmers interested in the Average Crop Revenue Election program and Direct and Counter-Cyclical programs in 2013 to consider which option better suits their risk management needs. NCGA Public Policy Action Team Chair Jim Reed says farmers need to remember they still have a variety of options to manage risk during the 2013 crop year – even though a new farm bill has yet to pass. Sign-up for ACRE closes June 3rd. DCP and CCP sign-ups close August 2nd. The organization strongly encourages farmers to explore their options and discuss their individual situations with their local Farm Service Agency representative.

For those considering these programs – NCGA notes the DCP doesn’t vary from previous years – with payment distribution beginning this October. The CCP – NCGA points out – is unlikely to make payments because trigger prices are low – relative to current market prices. The Marketing Loan Program and Loan Deficiency Payment Program will also exist for the 2013 crop year due to the extension of the 2008 Farm Bill. NCGA says LDPs are unlikely – as market prices remain well above loan rates.

Farmers can enroll in the ACRE program whether their farm has participated before or not – and those farms that have enrolled in ACRE previously will not be required to do so. Those choosing to enroll will have direct payments reduced by 20-percent, have loan rates reduced by 30-percent and will no longer be enrolled in the CCP. ACRE is a state revenue based program specific to each crop. State guarantees for the 2013 crop are unknown at this time – as limits on changes in revenue guarantees can change from year to year. If ACRE payments are triggered for the 2013 crop – they won’t occur until after October of 2014.

As farmers work in their fields – Reed says NCGA will continue to work in Washington to ensure the best possible risk management tools are available for farmers and the safety net remains strong.

Source: NAFB News Service