STRAIGHT FROM THE HORSES MOUTH

Duane A. Lienemann
UNL Extension Educator

      As I write this, amazingly enough, both the US Senate and House of Representatives have passed their versions of the 2013 Farm Bill and we may be close to getting the final product. While Congress is putting the final touches on the new 2013 FARRM (Federal Agricultural and Reform and Risk Management) Bill, it brings to mind that we are still dealing with the last Farm Bill. Perhaps we should take a good look at some prospects that could be there as we close the door on the 2008 Farm Bill. You might remember that the Farm Bill was set to expire September 30 of 2012, but with no new Farm Bill to take its place there was no other option than to extend that bill into 2013. The American Taxpayer Relief Act of 2012 provided a one-year extension of the ACRE program. This emergency clause gives farmers the option of choosing between either participating in the Average Crop Revenue Election (ACRE) Program or the Direct and Counter-cyclical Program (DCP) Program, no matter what you did in the previous years.
     2013 Emergency Farm Bill Sign-up: Farms that were enrolled in either DCP or ACRE in past years may continue with DCP or go with ACRE for the one-year extension in 2013.  Any farms that have already enrolled in DCP for 2013 may still elect to switch to ACRE on or before June 3, 2013 if they desire. The thing to remember is that producers who elect and enroll a farm in ACRE agree to forgo DCP counter-cyclical payments and accept a 20 percent reduction in their direct payments, plus a 30 percent reduction in marketing assistance loan rates. You may remember that ACRE payments are tied to current plantings on the farm as opposed to counter-cyclical payments, which are tied to the farm’s base acres.  ACRE payments are revenue-based payments and are tied to crop production and the National Average Market Price for commodity crops on the farm.  Payments are issued for crops if two triggers are met for the crop.  The State Trigger must be less than the State ACRE Guarantee and the Farm trigger must be less than the farm ACRE Guarantee.
      During the 2008 Farm Bill, these triggers were met and payments issued in Nebraska in 2009 in our area for oats, sunflowers and wheat.  We did not have any crops in our area qualify in 2010 and I am not certain for 2011, but according to the UNL Extension Cornhusker Economics bulletin, ag economists are predicting substantial payments for non-irrigated corn and soybeans for 2012 in Nebraska due to the size of the projected state payment rates. Even the FSA, using currently published NASS yields, admits that it appears that substantial ACRE revenue payments may be earned on certain 2012 non-irrigated crops. So if you have a lot of dry-land acres, you may want to consider that option. 
     It is very important for all producers to evaluate the ACRE decision before the June 3 deadline. I know that many producers have already made their mind up and have signed up according to what works best for them, but we may still have some individuals who have not made up their mind. If you are one of those, you can find additional information, including access to a free ACRE webinar for public viewing, by going to www.agecon.unl.edu/farmbill .  I also suggest contacting your local FSA County Office for additional information instead of relying solely on coffee shop advice.
     2011 Payments Released: Some good news for some farmers is that the USDA has resumed farm program payments which had been suspended by the budget sequester. This includes payments for the 2011 Supplemental Revenue Assistance Payments Program (SURE), the Noninsured Crop Assistance Program (NAP) and the Milk Income Loss Contract Program (MILC). Payments were temporarily suspended on March 4th in order to assess the impact of sequestration and determine the least-disruptive process possible for carrying out the required cuts.
     CRP Sign-up: While we are discussing farm programs, don’t forget that the general CRP signup will be open from May 20 through June 14.  The USDA is urging producers to maximize their environmental benefits and make cost-effective offers when enrolling in a four-week Conservation Reserve Program during that time frame. This program is important because it helps protect environmentally sensitive lands and ensure sustainability of natural waters. The USDA encourages producers to look into CRP's other enrollment opportunities offered on a continuous, non-competitive, sign-up basis. Kelsi Wehrman, Pheasants Forever Farm Bill Wildlife Biologist, at the Webster County NRCS office held several meetings in the South Central region this past week. It may interest you that the rental rates for Webster County and surrounding counties increased for 2013 with the average rental rate going from $78 to $99 per acre.  If you couldn’t attend these meetings I suggest that for additional information that you contact Kelsi at 402-746-0295 or go to www.NebraskaPF.com  or www.CRPsignup.com   or Webster County FSA office at 402-746-2204.  
     Rat Meat and Road Kill: I know that sounds weird, but I just read something that creeps me out.  I know that you hear a lot of people say that we should quit raising livestock in the US and import it from other countries. I am sure you heard about the horsemeat ending up in sausages and meatballs. Well that doesn’t sound so bad now. Investigators found that Chinese traders bought rat, fox and mink flesh and sold it as mutton. If that isn’t bad enough they also arrested other Oriental traders for processing and selling some 40 metric tons of pork derived from hog carcasses that were found by the side of the road or collected from farmers, and worst of all from diseased hogs that were deemed unfit for consumption. Foreign meat? –No thanks, I will stick to good old Nebraska pork, lamb, poultry and beef. No rat or road kill for me! 

 The preceding information comes from the research and personal observations of the writer which may or may not reflect the views of UNL or UNL Extension. For more further information on these or other topics contact D. A. Lienemann, UNL Extension Educator for Webster County in Red Cloud, (402) 746-3417 or email to: dlienemann2@unl.edu or go to the website at: http://www.webster.unl.edu/home