Title 1

Question 1

PLC ref prices: corn, soybeans, wheat, rice, peanuts, sorghum

Answer 1

: Corn $3.70/bu; Wheat $5.50/bu; Soybeans $8.40/bu; Cotton n/a; Rice $14.00/cwt; Peanuts $535/ton; Sorghum $3.95/bu

Question 2

base acre decision

Answer 2

keep their existing base acres or reallocate their base acres in proportion to plantings during the 2009 through 2012 crop years

Question 3

How is price calculated?

Answer 3

• Uses the 12-month marketing year average price for both programs: (1) for price protection, used in calculating the effective price and (2) for revenue protection, used in calculating the actual crop revenue

Question 4

PLC payment acreage coverage

Answer 4

85% of base

Question 5

PLC Yield update

Answer 5

Optional yield update to 90% of 5-year simple average of planted acre yields (2008–2012).

Question 6

SCO

Answer 6

Covers crop isurance deductible after a 14% loss, based on a county level trigger. Premium subsidy is 65%. Only for PLC crops.

Question 7

When is ARC triggered

Answer 7

actual revenue for a covered commodity falls b/w 86% and 76% of benchmark revenue (5-year olympic) for covered commodity

Question 8

County Coverage Option

Answer 8

 Administered for individual covered commodities at the county level.
 Payments made on 85% of the total base acres for the covered commodity on the farm.
 In calculating the benchmark revenue, uses a yield floor at 70% of the county T-yield and the reference prices listed above as a price floor.

Question 9

o Individual Coverage Option

Answer 9

 Administered collectively for all crops at the individual farm level.
 Payments made on 65% of the total base on the farm.
 The benchmark revenue and the actual revenue are based on the total production on all crops across all farms enrolled in ARC-Individual Coverage. In that sense, ARC-Individual Coverage is a whole-farm option.

Question 10

STAX

Answer 10

area-wide crop insurance policy with a loss threshold and maximum allowable coverage of 90% and 20% respectively. STAX carries a premium subsidy of 80%.

Question 11

marketing loan rate for cotton

Answer 11

—$0.52/lb under the 2008 Farm Bill—will now follow the 2-year simple average of Adjusted World Price but cannot exceed $0.52/lb and cannot fall below $0.45/lb.

Question 12

cotton bases

Answer 12

• Existing cotton base acres on a farm are converted to generic base acres. Generic base acres are NOT eligible for the base reallocation. Generic base acres will lay dormant unless a covered commodity (i.e. a crop other than cotton) is planted on a farm with generic base acres, at which point the generic base acres will be attributed to that covered commodity

Question 13

Payment limits

Answer 13

• A payment limit of $125,000 will apply to combined PLC, ARC, LDP, and MLG payments. A separate limit for peanuts is maintained. The doubling (to $250,000) for a spouse is maintained

Question 14

AGI means test

Answer 14

• The adjusted gross income (AGI) limit is now a combined $900,000 limit (averaged over 3 years) that applies to participation in both commodity and conservation programs

Question 15

NAP

Answer 15

• Annual forage producers (e.g. wheat pasture for grazing) will again be eligible for Non-insured Disaster Assistance (NAP) coverage. That coverage ended last year but was reauthorized. In addition, producers of non-insured crops other than forage will be eligible to purchase higher levels of NAP coverage going forward.

Question 16

LIP

Answer 16

75% of the market value for livestock that died due to adverse weather events.