Death, Taxes, and Crop Protection Deadlines

 
Apr 15, 2016
"I heard you're looking for protection."
Gator-at-the-Gate
WASHINGTON, DC – It’s a busy time of year with rice planting underway in areas where the weather is cooperating.  It’s also an important time of year to be thinking about the U.S. Department of Agriculture (USDA) programs and what you need to be doing to ensure your farm is up-to-date and in compliance to maintain program eligibility and maximize protection.  

Last year was the first time since the 2014 Farm Bill was passed that farmers had the opportunity to elect and enroll in either the Agriculture Loss Coverage (ARC) or Price Loss Coverage (PLC) programs.  After a careful analysis was conducted and released by USA Rice, the overwhelming majority of rice farmers opted for the PLC program for their rice coverage.  According to USDA, PLC was selected by 99 percent of long grain rice growers, 94 percent of Southern medium grain rice growers, and 68 percent of Temperate Japonica rice growers.

PLC is designed to provide assistance to enrolled farmers when the effective price of their commodity is less than the statutory reference price.  For long grain and Southern medium grain rice, the reference price is $14.00/cwt and for Temperate Japonica rice, $16.10/cwt.

If triggered, payments for the 2015 crop year will be made starting in November, following the release of 2015/2016 Marketing Year Average Price data in late October.  While the election between ARC and PLC is completed and remains in effect through 2018, producers must still enroll their farm by signing a contract each year to receive coverage.  

“It’s important that farmers consult their local Farm Service Agency (FSA) offices as soon as they can to ensure program eligibility,” said Ben Mosely, USA Rice vice president of government affairs.

”If you have bought or sold land, or if you have picked up or dropped rented land from your operation, make sure you report the changes to the office as soon as possible,” Mosely continued.  “You need to provide a copy of your deed or recorded land contract for purchased property.  Failure to maintain accurate records with FSA on all land you have an interest in can lead to possible program ineligibility and penalties.”

Mosely is encouraging growers to contact their local FSA office to schedule an appointment to enroll. If a farm is not enrolled during the 2016 enrollment period, producers on that farm will not be eligible for financial assistance from the ARC or PLC programs should crop prices or farm revenues fall below the historical price or revenue benchmarks established by the program.

“For payment limitation purposes, June 1, 2016 is the last day to add a person, spouse, or legal entity to your operation for payment limitation purposes,” Mosely said.  “The deadline to visit your local FSA office and enroll your acres into PLC or ARC for the 2016 crop year is August 1, 2016.  I suggest everyone try to visit with the FSA personnel sooner rather than later to allow time for possible issues to be resolved.”


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