Agriculture NewsCurrent futures prices for corn and soybeans are bad enough, but the picture is much worse looking at local cash bids. What’s causing the wide basis levels? Joe Camp, AgriVisor risk management specialist, and Mike Doherty, Illinois Farm Bureau senior economist and policy analyst, explain in this Q&A. (FarmWeekNow.com)
Tag Archives: risk management
BASICS OF BASIS
Posted in Agriculture News
Also tagged Basis, commodity prices, Corn, futures, Marketing, soybeans
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U OF I SIMULATOR PUTS NUMBERS TO FARM RISKS
Farmers face a multitude of financial risks beyond the traditional relationship between input costs and commodity prices. Different crop insurance levels – or lack thereof – as well as farm bill programs, conservation initiatives, regulations, taxes and interest rates all affect the bottom line. A new University of Illinois tool helps farmers calculate those risks… read more
PAYMENTS MAILED
Farm program checks totaling nearly $4 billion could start arriving as early as Tuesday in farmers’ bank accounts across the country, providing a much needed boost while many commodity prices are falling. It’s the first ARC/PLC payments for the 2014 crop year.
PAYMENT SEQUESTRATION
Recent reports indicate that payments from the Price Loss Coverage (PLC) or Agriculture Risk Coverage (ARC) programs for the 2014 crop year may be reduced by nearly 7% due to sequestration. Check the latest at FarmDoc.
Posted in Agriculture News
Also tagged commodity programs, FarmBill14, sequestration
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ARC/PLC SIGNUP
USDA Secretary Tom Vilsack has announced that eligible producers may now formally enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for 2014 and 2015. The enrollment period begins this Wednesday (June 17), and will end Sept. 30, 2015. Check out details on FarmWeekNow.com.
CROP INSURANCE
USDA’s Risk Management Agency (RMA) Friday announced more options for farmers who elected the Supplemental Coverage Option (SCO) or Actual Production History (APH) Yield Exclusion in their crop insurance plans. RMA announced that alfalfa seed, cultivated wild rice, dry peas, forage production, oats, onions, rye and winter wheat are eligible in certain counties for APH… read more
CROP INSURANCE
For the 2014 crop year, corn indemnities have totaled $3.7 billion, much of which has gone to just two states: Iowa ($1.1 billion) and Minnesota ($1 billion). Illinois’ total was just $143 million.
Posted in Agriculture News
Also tagged Corn, crop insurance, Illinois, Iowa, Minnesota
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SIGNUP EXTENSION
Farm program signup deadline for ARC/PLC has been extended to April 7, USDA announced this morning.
NOT CHARGING ENOUGH
Farmers often aren’t being charged enough for crop insurance in drought-prone areas of the Plains and other high-risk regions, according to congressional auditors. From 2013 to 2014, RMA raised some premiums, but not all, in higher-risk counties by the maximum 20%, GAO said.
FARM BILL COSTS
The government will pay $6.5 billion in crop subsidies for this year’s grain and soybean crops because of falling commodity prices, according to an estimate by the Food and Agricultural Policy Research Institute. Average ARC and PLC payments are projected to peak with the 2015 crop and decline to $3.4 billion for the 2018 crop.
