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10-31-2018 07:49 AM
FT this is an excellent question or comment from you.
The secret to creating earnings in farming is more related to consistently
and persistently being an outlier. I certainly could never understand
planting more beans in 2018 and yet that is what happened. We added
5% no-till corn on corn in 2018. We also sold all the beans early.
So, for 2019, we will probably go back to our traditional 50:50 mix.
After record corn yields, the odds of that continuing are pretty low. As
well, after a perfect spring the odds of that again are extremely low. The
reasons grow more corn in 2018 just do not exist in 2019.
To your question of what else to plant? There is no reason to plant
something else when you have the gov guarantees and insurance
protection. Actually, the bank probably wouldn't let you plant anything else.
just thoughts...but it is way to early to think anyone knows what acres
will be next year at this point. Despite the tariffs, soybeans with subsidy
have been very profitable this year for many. Just way to many big
variables that are unknown.
10-31-2018 09:02 AM
How much subsidy does the government typically provide for beans or for corn ? How do they measure it per farm, based on past production or by the amount of acreage devoted each year to a specific crop type ? Does the market price affect the subsidy, how about weather conditions ? For example, if the market price on a specified date is below a fixed price, does the subsidy increase ? Or if there is a very bad weather season that is affecting yields, does the subsidy increase ?
10-31-2018 11:15 AM
ARC/PLC program -- Personally, I think it should have been all based on county averages, no program selection between ARC and PLC, just pay on the higher (or lower) of the two calculations. The program started with the last farm bill, we had to select ARC or PLC for each crop at the beginning of the program, yet we still re-enroll each year, although we can't change our original program selections. The Supplemental Loss Program started at the same time, I think, and it probably has a benefit for some. No word yet on what happens with these programs for next year if no new Farm Bill, but history says they could extend the programs another year.
Then, for now, there is also the Market Facilitation Program. Think it should have been based on acres planted (reported to FSA), then production all based on county averages, not individual production, would have been more simple, just stop by FSA and sign up. https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2018/Market_Facilitation_Progra...
10-31-2018 11:21 AM
This is all excellent information, especially for any farmers who may not have had the full details of these programs. Thank you very much for the time you have spent posting this information and links to it !
10-31-2018 11:31 AM
Well there's 2 million farms in the US, and perhaps some of the owners may be new. Many of them may even visit this forum.
Even if they know about these programs and provisions, you now have provided an easy way to find the guidelines through your posting of them.