1. Associate Professor/Crop Markets Specialist
The 2014 Farm Bill
Ames, Iowa
May 31, 2014
Chad Hart
Associate Professor/Crop Markets Specialist 1 1

2. Farm Bill Titles Commodities IX. Energy
Conservation X. Hort. & Organic Ag.
Trade XI. Livestock
Nutrition XII. Crop Insurance
Credit XIII. Commodity Futures
Rural Development XIV. Miscellaneous
Research XV. Trade & Taxes
Forestry

3. Farm Bill Projected Spending
$489 Billion

4. Old vs. New Direct Payments (DP) Countercyclical Payments (CCP)
Marketing Loans (LDP)
Revenue Countercyclical Payments (ACRE)
Countercyclical Payments (PLC)
Marketing Loans (LDP)
Revenue Countercyclical Payments (ARC)
New programs, but they have strong similarities to previous programs

5. Marketing Loans Loan Rates Set by law Corn $1.95 Wheat $2.94
Soybean $5.00
Sorghum $1.95
Barley $1.95
Oats $1.39

6. PLC instead of CCP Price-based support program
Reference prices establish targets
Works like CCP
Payment rate = Max(0, Reference price – Max(MYA price, Loan rate))
Payment = Payment rate * Payment yield * Payment acres

7. PLC vs. CCP and DP

8. ARC instead of ACRE Revenue-based support program
Revenues based on 5-year Olympic average yields and prices
Yields and prices have cups (County T-yields and reference prices)
Triggers at county or individual farm level, instead of state level

9. ARC-County

10. Producer Choice

11. Thank you for your time. Any questions. My web site: http://www. econ
Thank you for your time! Any questions? My web site: Iowa Farm Outlook: Ag Decision Maker: