Lecture 9 Flashcards
What are the implications for farmers/landowners who underplanted bases or did not plant anything at all like rice in Texas??
Missed opportunity— they would’ve lost money if updated bases so couldn’t update yields
Your payment yield was from 1985
Why do government payments NEVER make you whole?
1) Yields are lower than actual
2) 0.85 factor
What are counter-cyclical payments?
Decoupled from production but NOT price
Decoupled
Do not have to produce to receive payment
Coupled
Do have to produce to receive benefits from marketing loans, gains, or LDPS
What is the Scotty Pippen Rule?
AGI Limitation
They were getting significant payments because of their CRP land.
For the first time every, the 2002 farm bill introduced they put in a 2.5 M AGI
What are usually partially decoupled payments?
Farmers don’t get payed unless they meet the price triggers?
2008 Farm Bill
ACRE
Payment Limits
AGI
SURE
2008 Farm Bill
ACRE Payment Limits AGI SURE DCP
What was one major change that was implemented by the 2008 bill?
It farmers the choice to choose between ACRE and DCP
What does ACRE do?
Direct payment and loan reduction
Gross revenue protection plan for each covered commodity and peanuts
Why wasn’t ACRE selected much in TX?
Both Triggers had to happen before you could get payed.
What criterion must be met to receive payments under ACRE?
1) The actual state revenue for the crop is less than the ACRE program guarantee
2) Actual state revenue for the crop is less than the farm ACRE benchmark revenue.
What are the 5 supplemental ag disaster assistance programs?
- SURE
- LFP
- LIP
- TAP
- ELAP
What is the Supplemental Revenue Assistance Payments Program (SURE)?
Its shallow loss program:
If you have any kind of loss, this program will pay you.
These programs don’t give you the amount of money you would like, but you are more likely to trigger these programs and get some pay.
