Updating base to reflect the actual acres now grown on the farm will give a stronger safety net for the acres on that farm. If you are going to grow peanuts, you are probably going to want more base acres.

Why would a peanut farmer update yield?

Yields have increased greatly since payment yields were established in 2002, meaning yield would be much lower in a lot of cases than the 2008-2012 average yields, which is what can be used as the benchmark to update yields under the 2014 farm bill.

Can you update wheat, soybean or corn base to peanut?

Yes, you can update those to peanut if you have the history of peanuts in the last four years.

Peanut cash flow and program payment dates?

The program payments use the marketing year average price which carries into the summer of the next year. If prices lose coverage payments are triggered under PLC, the payments will be made Oct. 1 or after; same timeframe under ARC, too. This is no different from previous farm bill, but considering this growing season will be the first under the new system, payments will not come out until after Oct. 1, 2015.

Can you retain current base and update yield?

As the law reads now, a grower can retain current base and update yield to reflect current yield trends. You have a one-time opportunity to update payment yield used to calculate PLC payment in 2014 crop year, and if you elect to update yields for PLC, it will be 90 percent of the 2008-2012 average yield.

It is important to note that the USDA Farm Service Agency must now write the rules and regulations they will use to follow the farm bill law passed by Congress. One particular rule FSA will clarify is how non-family members might be eligible for a farm’s program, or the rule to what is the definition of an active on-farm producer who can qualify for programs.

Interviews with and information from the Georgia Peanut Commission, Nathan Smith, UGA Cooperative Extension peanut economist, and Stanley Fletcher, director of the UGA Center for Peanut Competitiveness helped answer these questions.

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