/Soybean%20%202012

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Farm Bureau Policy Development Fact Sheet No. 7 — 2012 SOYBEAN PROBLEMS AND ISSUES FARM PROGRAMS/CROP INSURANCE The U.S. Senate passed their version of the new farm bill on June 21, 2012. The bill eliminates direct payments, counter-cyclical payments, and Average Crop Revenue Election. The bill creates a new Average Risk Coverage (ARC) program which covers planted acres for qualifying crops, including soybeans. Producers can choose to receive either individual coverage or county coverage, and payments would be made when the actual crop revenue for the year is less than the ARC guarantee of 89 percent of the benchmark revenue. The bill calls for a separate guarantee for irrigated and nonirrigated crops. The payment rate equals the lesser of the amount that the ARC guarantee exceeds the actual crop revenue for the crop year or 10 percent of the benchmark revenue for the crop of the covered commodity. The ARC payment rate will be multiplied by a lower rate for those who selected individual coverage: 60 percent for planted acres and 45 percent for prevented planted acres. For county coverage, payments would be made on 75 percent of planted acres and 45 percent of prevented plantings. The total amount of payments under ARC may not exceed $50 thousand, but both qualified spouses on a farm can be eligible. Producers would not be eligible for commodity programs if their adjusted gross income over the three taxable years preceding the actual program year exceeds $900 thousand, including both farm and non-farm income. The Marketing Loan Program was included, but loan rates were unchanged, leaving soybeans at $5 per bushel. The bill also includes a Supplemental Coverage Option (SCO). Program and specialty crop producers could purchase a revenue policy on top of their individual crop insurance coverage to cover all or part of their deductible portion of their individual insurance policy. Coverage would be triggered only if losses exceed 10 percent. A minimum of 70 percent of the premium would be subsidized by the Federal Crop Insurance Corporation. The House version of the bill is not finalized at this writing. Related Policy: Risk Management/Crop Insurance N-225, National Farm Policy N-239


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/Soybean%20%202012 by Arkansas Farm Bureau - Issuu