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Farm Bill Safety Net Programs Now Open for Enrollment

Farm Bill Safety Net Programs Now Open for Enrollment

By Tyson Redpath, The Russell Group 

The USDA has announced signup for the Agriculture Risk Coverage (ARC) Program and the Price Loss Coverage (PLC) Program covering the 2019 and 2020 crop years. Updated by the 2018 Farm Bill, these revised safety net programs allow California rice growers to enroll and elect coverage in crop-by-crop ARC-County or PLC, or ARC-individual for the entire farm, for program year 2019. This election will apply for the 2019 and 2020 crop years.

Growers have until March 15, 2020 to make this election. If this election isn’t made by that deadline, the program coverage defaults to the current election made under the 2014 Farm Bill.

Here’s a link to a helpful decision tool from Joe Outlaw of Texas A&M.  

Once the 2019 election and enrollment are completed growers can then turn to 2020. Beginning on October 7 and lasting through June 30, 2020, growers can complete an enrollment contract for the 2020 crop year. The 2019 enrollment must be completed first however a grower waiting until October 7th can complete the 2019 and 2020 enrollment process during the same USDA office visit. During this enrollment, farm owners have a one-time opportunity to update PLC payment yields which will take effect with the 2020 crop year.

For 2021 through 2023, growers will have the choice to make a new election.

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Farm Bill Title 1 Enhanced Under Reconciliation: California Impacts
Farm Bill •

Farm Bill Title 1 Enhanced Under Reconciliation: California Impacts

In Congress’s budget reconciliation, signed on July 4 by President Trump, significant improvements were made to Title 1 of the Farm Bill, including:

  • Loan Rate – $7.70
  • Temperate Japonica Medium Grain Reference Price – $24.33
  • $155,000 Payment Limitation, increased from $125,000
  • These changes will be for the 2025 crop year through 2031
  • Starting in 2031, the reference price will rise automatically by 0.5% but cannot exceed 113% of the original reference price 
  • Agriculture Risk Coverage (ARC) guarantees 90 percent of the benchmark revenue and the payment band of 12 percent for crop years 2025 through 2031.

Notes to remember:

Growers can annually select ARC or PLC for their operation. All payments continue to be subject to a 5.7% sequestration. 

USA Rice 

The US rice industry was only able to achieve these results through collaborative work among all states. Great credit is due to USA Rice for their years-long work on improving the rice safety net and support of both Chairman GT Thompson and Senate Ag Committee Chair John Boozman.

Please find their comprehensive analysis here.

Next

The conservation title and other titles of the farm bill will be taken up by the House and Senate Ag committees in a skinny farm bill this fall. Bi-partisan work is expected.

rice harvest
Farm Bill •

Farm Bill in Focus

By Tyson Redpath, The Russell Group

This January, a new Republican majority arrives to the U.S. House of Representatives holding a four-vote majority which is identical to the current House Democratic majority. A flip to GOP control will have only modest policy impacts because the Senate majority will stay in Democratic hands. Meanwhile, the Biden Administration will continue to chart a course for rulemaking and Executive Order action for at least the next two years. 

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