What is in this article?:
- Here's a recap of where the farm bill now sits
- ACRE program eliminated
- The Senate approved its farm bill June 10. July 11, the House passed an amended bill which excluded the Nutrition title. These two bills now go to conference committee where the differences must be compromised for a final farm bill that must then go back to both House and Senate for approval and then signed by the president to become law.
AFTER FITS of stop and start, Congress, which soon returns from summer break, still faces the task of developing a new farm bill that would begin with the 2014 crop year.
ACRE program eliminated
• The ACRE program is eliminated in both bills.
• The Senate bill establishes Agriculture Risk Coverage(ARC). This is a revenue-based payment for all crops eligible for AMP. ARC payment is made in addition to AMP. Payment is based on benchmark farm revenue or county revenue. The producer must make a one-time irrevocable election.
• The House bill establishes Revenue Loss Coverage (RLC) as an alternative to Price Loss Coverage (PLC). Producers must make a one-time irrevocable election of PLC or RLC. The election may be on a farm-by-farm and crop by crop basis. RLC payment is based on benchmark county revenue. There is no farm option.
• Both House and Senate bills continue the current Marketing Loan program including Loan Deficiency Payments (LDP’s). Loan Rates remain as in the current law except for cotton. In the Senate bill, the loan rate for cotton will be the average AWP (Adjusted World Price) for the previous 2 crop years with a minimum of 45 cents and maximum of 52 cents. The House bill is the same as the Senate bill except the minimum is set at 47 cents.
• Cotton is not included in AMP, ARC, or PLC/RLC. Instead, both House and Senate bills would establish a new revenue-based insurance program called STAX (Stacked Income Protection Plan) for cotton beginning with the 2014 crop. The STAX policy may be purchased as a stand-alone policy or in addition to other coverage. The STAX premium subsidy is set at 80 percent. A payment (indemnity) is received when actual county revenue falls below 90 percent of benchmark county revenue.
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