What is in this article?:
- Senate farm bill vote expected
- Commodity title, more insurance
- Senate to vote on new farm bill on Tuesday.
- Key provisions from a Southern perspective.
- Crop insurance, commodity title considerations.
Commodity title, more insurance
What can producers expect with respect to the commodity title?
“I believe the price loss option will be for the 2014 crop year. My understanding is that farmers must visit with the (Farm Service Agency) and choose between price loss coverage and a revenue approach.”
Most expect Mid-South producers will stick with price loss coverage due to similarities with the counter-cyclical program.
What about crop insurance?
“When you look at crop insurance for 2014, I don’t think there’s a lot of change. Most all the changes that, to me, are positive for Mid-South farmers and crop insurance will be implemented in 2015. The SCO (Supplemental Coverage Option) is going to enhance crop insurance. It will be very interesting to see how the rice margin insurance shakes out and see what scenarios it will cover.”
Another thing worth consideration is that it’s cheaper to insure by enterprise units. “The farm bill says, ‘Okay, you can choose enterprise units and put all your dryland acres in one unit and all your irrigated acres in another unit. And you can still get your enterprise discount. That’s a huge deal for farmers that have both dryland and irrigated cropland in the same commodity.”
From a quick read through of the new bill, Hall says these are among the highlights:
- Farmers receive a choice in commodity programs.
- Crop insurance has been strengthened.
- Livestock disaster has been funded.
Interestingly, the bill’s commodity title is reduced by $14 billion while crop insurance funding has been increased by $7 billion.