Farm Bill

Farm Bill •

Updated Information now available for Farm Bill Decision Tool

rice harvest

Growers will need to decide which Farm Bill safety-net program to participate in for 2019 and 2020. We have just updated the decision tool from attorney Tim Kelleher that should simplify the process. 

There are placeholders for name, county, PLC yield, estimated prices and yields on the input page (Input Tab).  Each grower will need to overwrite these placeholders with their own information and estimates of price and yield.

First, make your best estimate of 2019 and 2020 prices, including CCC loan. Remember, this is the average state price for medium/short grain rice.  Next, make your best estimate of how low the price might go.  This will tell you if there’s a possibility of a payment under the PLC program.

Next, look at your county yield history, then make your best estimate of expected yield and a possible low yield.  There are a variety of yield and price combinations to find the best fit for your operation. 

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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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