• State Farmed

  • County Farmed

  • Total CRP & WRP Acres

  • Total Double Crop Acres

  • Crop Data:

  • -- Current Base Acres & Program Yields

  • -- Planted & Prevented Planted Acres (1998 - 2001)

  • -- Yields (1998 - 2001)

Since the Agricultural and Food Policy Center at Texas A&M is presently working with the Farm Service Agency on their decision aid software, for the next step go to the A&M web site http://www.afpc.tamu.edu/models/bya/ and input the above information and data into the web based base and yield update option analyzer. Remember, this is not the Farm Service Agencies web site and this is not FSA’s computer program.

At some point in the immediate future we will have access to the FSA version of the Texas A&M software on FSA’s web site. Actually, this software program will provide more information and analysis than the version FSA will release.

The software program’s permitted combinations of base updating and payment yield establishment are as follows: (numbers in parentheses represent the base or yield option which will be discussed once the six alternatives are analyzed)

  • Alternative A. Freeze 2002 base acres (1) and payment yields (5).

  • Alternative B. Add oilseed base acres (2), freeze non-oilseed payment yields (5), establish oilseed payment yields (6).

  • Alternative C. Maximize oilseed base acres (3), freeze non-oilseed payment
    yields (5), establish oilseed payment yields (6).

  • Alternative D. Update all base acres (4), freeze non-oilseed payment yields (5),
    establish oilseed payment yields (6).

  • Alternative E. Update all base acres (4) establish all payment yields using 70% formula (7).

  • Alternative F. Update all base acres (4) establish all payment yields using 93.5% formula (8)

The program will generate an extensive set of decision aid information, but for this exercise lets simply say that the program will


  1. Provide for each of the above alternatives a risk analysis table showing the average annual government payments calculated using variable annual prices, and

  2. Provide average annual government payments using fixed prices and low and high price scenarios.
Remember the program does not provide a correct answer, but rather provides information so a producer can better understand the consequences of the options available for updating Base Acres and Farm Program Yields.

Armed with the decision aid analysis information and a working knowledge of the farm program or access to someone with a working knowledge you will have a reasonable understanding of the direct and/or counter-cyclical payments this farm will receive. With this information and/or additional human expertise you are now ready to chose a base and yield option.

The base acre options as follows:

Option 1. Freeze 2002 production flexibility contract (PFC) base acres for all years,

Option 2. Add the minimum oilseed acres to existing 2002 PFC base acres,

Option 3. Add the maximum oilseed acres to existing 2002 PFC base acres by reducing base acres for non-oilseed crops. Also, owners may offset part of PFC acres with eligible oilseed history acreage. This base option is not included in the Base and Yield Update software. This option should be discussed with Farm Service Agency (FSA) at sign-up, or

Option 4. Update all base acres using the 1998-01 average of planted acres.

An example of Base Acre Option 1. Freeze 2002 production flexibility contract (PFC) base acres for all years:

Producer has 100 acres of cropland with a rice base of 100 acres. From 1998-2001

average rice acres equaled 90 & 10 acres were fallowed. Under this option

producer keeps historic base acres.

An example of Base Acre Option 2. Add the minimum oilseed acres to existing 2002 PFC base acres.

Producer has 200 acres of cropland with a rice base of 100 acres. From 1998-2001 average rice acres equaled 90 and soybean acres equaled 110. Under this option producer keeps historic rice base and add oilseeds. New base: 100 acres of rice and 100 acres of soybeans.

An example of Base Acre Option 3. Add the maximum oilseed acres to existing 2002 PFC base acres by reducing base acres for non-oilseed crops.

Producer has 200 acres of cropland with a rice base of 100 acres and a grain sorghum base of 50 acres. From 1998-2001, average rice acres equaled 90 acres, grain sorghum acres equaled zero and soybean acres equaled 110. Under maximum oilseed option a producer may reduce grain sorghum base acres in favor of soybean base. Under option 3, this gives the producer 100 rice base acres and 100 soybean base acres.

Note:Also, owners may offset part of PFC acres with eligible oilseed history acreage. This base option is not included in the Base and Yield Update software. This option should be discussed with the Farm Service Agency (FSA) at sign-up. Following this option, the producer keeps 10 acres of grain sorghum base. The producer now has a new farm base of 100 acres of rice base, 90 acres of soybean base and 10 acres of grain sorghum base.

An example of Base Acre Option 4. Update all base acres using the 1998-01 average of planted acres.

Producer has 300 acres of cropland with a rice base of 100 acres. From 1998-2001, average rice acres equaled 150 and soybean acres equaled 150. Under option 4 the producer now has a rice base to 150 acres and add soybean base acres of 150.

The payment yield options are as follows:

Option 5. Freeze 2002 PFC payment yields for all years,

Option 6. Add oilseed PFC payment yields to 2002 PFC payment yields for other crops,

Option 7. Update all PFC payment yields using 70 percent of the increase in weighted average yields for 1998-01 over the 2002 PFC payment yields, or

Option 8. Update all PFC payment yields using 93.5% of the weighted average yields for 1998-01.

A Cotton example for Payment Yield Options 5-8

· Current farm program yield 500 lbs

· 1998-2001 average yield 725 lbs

· 2002 Yield Options:

Option 5 FPY = 500

Option 6 FPY = 500 + Add Soybeans

Option 7 FPY = 500 + ((725 – 500) x .70)) = 657.5

Option 8 FPY = (725 x .935) = 677.88

Farm program yield updating only applies to counter-cyclical payments.

e-mail: rcoats@uaex.edu