Issues

ACRE Program Sign-Up Deadline Approaching

Fri, 24 May 2013 20:19:00 +0000

Source: Purdue University

Corn and soybean growers have until June 3 to decide whether they will participate in the Average Crop Revenue Election (ACRE) plan or continue with the regular Direct and Counter-Cyclical Payment Program. Both programs, administered by the U.S. Department of Agriculture's Farm Service Agency, are intended to help protect farm revenues.

Perspectives on U.S. Farm Debt

Tue, 21 May 2013 21:14:00 +0000

There is considerable discussion among agricultural economists and lenders concerning the status and trends of U.S. farm debt. Let’s dig deeper into the subject and provide perspective.

Road Warrior

Farmers’ Share of Losses

Tue, 21 May 2013 21:10:00 +0000

With the farm bill in what could be the final stages before vote, there’s still some talk of cutting crop insurance subsidies. This led Tom Zacharias, president of National Crop Insurance Services to point out that before farmers received a dime in crop insurance indemnity payments, they had shouldered $12.7 billion in losses as part of their deductibles to crop insurance policies. In addition, the premiums paid by farmers totaled $4.1 billion – bringing their share of the disaster to $16.8 billion.

News from Brock Associates

How Do You Define Success?

Thu, 16 May 2013 20:35:00 +0000

Some define success as the long-term succession of your kids at the farm. Albert Schweitzer defined success as loving what you do. How you treat others, from family to strangers, is Barbara Bush's definition of success.

Bottom Line

May 14 USDA Weekly Weather Update

Thu, 16 May 2013 19:12:00 +0000

Source: USDA

During the second half of the week, a new weather system swept across the Midwest, South and East, producing additional showers and closing a brief window of opportunity for fieldwork. Mid- to late-week rainfall was not especially heavy, although many parts of the Corn Belt received in excess of an inch. Farther west, dry weather prevailed across the northern Plains and far Upper Midwest, promoting an acceleration of spring wheat planting and other fieldwork.

House Ag Committee Approves Farm Bill

Thu, 16 May 2013 14:15:00 +0000

Source: House Agriculture Committee

Chairman Frank Lucas (R-OK) and Ranking Member Collin Peterson (D-MN) issued the following statements after the House Agriculture Committee approved the farm bill, H.R. 1947, the Federal Agriculture Reform and Risk Management (FARRM) Act of 2013, by a large, bipartisan vote of 36-10. Committee members also adopted, by voice vote, an en bloc amendment.

Shock and Stress Testing: Analysis by Lenders

Tue, 14 May 2013 18:23:00 +0000

One of the major financial shock tests that a lender must perform concerns concentration of credit. Regulators and oversight specialists are very concerned about this component as agriculture consolidates with fewer producers generating more of the revenue and carrying a larger proportion of the debt.

Road Warrior

House Ag Committee Drafts Farm Bill

Mon, 13 May 2013 16:07:00 +0000

Source: House Agriculture Committee

On May 10, the House Ag Committee marked up their version of the Federal Agriculture Reform and Risk Management Act (FARRM) Act of 2013. It is nearly identical to the bill marked up last summer.

Senate Marks Up the 2013 Farm Bill

Fri, 10 May 2013 15:35:00 +0000

Source: Senate Agriculture Committee

The Senate’s bipartisan 2013 Farm Bill represents the most significant reform of American agriculture policy in decades.

With the Agriculture Reform, Food and Jobs Act, the era of direct payments is over. Instead of subsidies that pay out every year even in good times, the bill creates risk management tools that support farmers when they are negatively impacted by weather disaster or market events beyond their control.

7 Questions About the Farm Bill

Thu, 09 May 2013 20:19:00 +0000

Source: University of Illinois farmdocDaily

Farm Bill markup likely will begin soon in both the Senate and House Agricultural committees. Much of the focus for traditional program crops will be around three programs: a revenue program, a target price program and a supplemental crop insurance program. While the exact nature of the programs will depend on negotiations, what is almost certain is that the programs' rationale will be risk management. Given a risk management focus, farm bill negotiations will need to debate and somehow resolve the following seven questions.