Focus on Ag Continued From Page 2

2023 PLC payments. The MYA price did not drop below $8.40 per bushel from 2014-2021 and will not drop below that level for the 2022 marketing year. There has never been a soybean PLC payment since the PLC program was initiated in 2014. The final county yield for 2023 will likely need to be 15% or more below the 2023 county benchmark yield to initiate a 2023 soybean ARC-CO payment, which equates to a 2023 county average yield decline of 7-10 bushels or more per acre in most counties.

Given the current soybean price projections, the 2023 farm program choice probably leans toward ARC-CO in most instances; however, the odds of a 2023 ARC-CO payment are low.

Wheat – Both the 2023 PLC reference price and the ARC-CO benchmark price for wheat are $5.50 per bushel. The final wheat MYA price was below $5.50 per bushel from 2015-2020, with substantial PLC payments earned in many of those years; however, the 2021 MYA price was $7.63 per bushel and the current projected MYA price for 2022 is $9 per bushel. Generally, wheat producers have tended to favor the PLC program over the ARC-CO program due to the favorable PLC payments from 2014 to 2021; however, at this point the odds of a 2023 PLC or ARC-CO payment are quite low.

• Are there situations where ARC-IC might be a favorable farm program choice?

The ARC-IC program utilizes the same benchmark price and final MYA price as the ARCCO program; however, ARC-IC is based on farm-level yields rather than the county benchmark and final yields. The ARC-IC program must be applied to all covered commodities on a given FSA farm unit, and all farm units in a state that are enrolled in ARC-IC are considered together in one ARC-IC calculation. In addition, ARC-IC payments are paid on only 65% of crop base acres, compared to payments on 85% of base acres for PLC and ARC-CO payments, which tends to limit instances where ARC-IC is a favorable farm program option. However, there may be situations on individual farm units that are being planted to a single crop in 2023 where ARC-IC might be a consideration, especially in areas that may be impacted by drought this year.

• How is the MYA price determined? All 2023 PLC and ARC-CO payments for corn and soybeans will be based on the market year average (MYA) price from Sept. 1, 2023, through Aug. 31, 2024, which means that the current high price levels may not impact the final 2023 MYA prices. The MYA price is a monthly average farmlevel price from throughout the U.S. that is weighted for the volume of bushels sold each month. The 2023 MYA price marketing year for wheat and small grains runs from June 1, 2023, through May 31, 2024.

• Does Supplemental Coverage Option (SCO) insurance coverage impact farm program decisions?

Yes, in some instances. The SCO coverage is an add-on option to traditional federal crop insurance that is only available with the PLC farm program choice and not with ARCCO or ARC-IC. The federal government subsidizes 65% of the premium for SCO coverage, so farm-level premiums are quite reasonable, which may make SCO a viable option for producers that choose the PLC farm program option. SCO allows producers to purchase additional county-level crop insurance coverage up to a maximum of 86% coverage, so it can be a very attractive insurance option for producers that typically utilize 75 or 80% for their revenue protection (RP) crop insurance coverage. The Enhanced Coverage Option (ECO) crop insurance option provides additional area-based insurance coverage from 86% up to 90 or 95% coverage, utilizing county yields similar to SCO coverage. The purchase of ECO coverage is available with selection of either the PLC or ARC-CO farm program choice. Check with a crop insurance agent for details on SCO and ECO insurance coverage and premium costs.

• Where can I find some good PLC/ARC-CO calculators to assist with the farm program decision?

Following are links to some very good farm program calculators that allow for comparison of potential PLC and ARC-CO payments at various final 2023 MYA prices and various final 2023 county yields: North Dakota State University –https://www.ag.ndsu.edu/farmmanagement/farm-bill Kansas State University –http://www.agmanager.info/agpolicy/2018-farm-bill Iowa State University – https:// www.extension.iastate.edu/agdm/ University of Illinois FarmDoc website – https://farmdocdaily.illinois.edu/category/areas/agricultural-policy/farm-bill

• Are there some other good farm program resources?

The official farm program details and information is available on the FSA farm program website at: https://www.fsa.usda.gov/ programs-and-services/arcplc_program/index

Email kent.thiesse@minnstar bank.com to request a free copy of the information sheets titled “2023 Farm Program Decision Cheat Sheet” and “2023 Crop Insurance Decisions,” which contains information and a table with examples for SCO and ECO insurance ing down,” said Governor Walz. “From clean energy to medical technology, there are incredible opportunities to expand our business partnership with Norway while creating jobs and boosting trade and investment. I am grateful for the opportunity to tell Minnesota’s story and further strengthen our economic ties with our friends in Norway.”

Governor Walz was honored by a royal audience with His Majesty King Harald V and later held meetings with Norwegian business leaders and government officials. The meetings focused on promoting Minnesota as a top destination for business investment, developing new business opportunities, and strengthening Minnesota’s existing business and investment ties with Norway. The Governor also attended a business promotion luncheon for European companies looking to expand in Minnesota, highlighting the strength and diversity of the state’s economy and business ecosystem. In the evening, the Governor attended a reception in Oslo celebrating opportunities in trade and investment, academic and cultural exchanges, and the historic military partnership between Minnesota and Norway. The reception was attended by government officials, businesses, academic alumni, and Minnesotans living in Norway. Photos from today’s events are attached.