1. Agricultural Act of 2014 PLC (Price Loss Coverage) And ARC (Agriculture Risk Coverage) FSA 2014 Farm Bill TrainingMontana Producer Meetings1

2. Subjects to be covered at today’s meeting Elimination of direct payments for 2014 and future years One-time opportunity to update FSA payment yields and reallocate base acreage Review the general provisions of the: - Price Loss Coverage (PLC) program - Agricultural Risk Coverage - County (ARC – CO) program - Agricultural Risk Coverage – Individual Coverage (ARC-IC) program FSA 2014 Farm Bill TrainingMontana Producer Meetings2

3. Agricultural Act of 2014 Terms and Definitions Marketing Year Average – 12-month weighted average National Price (Please see handout for more information) Olympic Average – Previous 5 years’ data, excluding the highest and lowest value; average the remaining 3 values. CC Yield – The yield that existed on the farm under the previous farm bill which was used for the counter-cyclical program. Covered Commodities – The 21 commodities identified in statute for which base acres may exist on farms. FSA 2014 Farm Bill TrainingMontana Producer Meetings3

4. Agricultural Act of 2014 Terms and Definitions Payment Acres For PLC and ARC-CO – 85% of the base acres of each covered commodity. For ARC-IC – 65% of the farms Total Base Acres for all covered commodities. Shallow Loss ARC programs are considered “shallow loss” programs. Losses up to 76% of the benchmark revenue will be covered. Will not cover catastrophic losses FSA 2014 Farm Bill TrainingMontana Producer Meetings4

5. Timeline for Actions Base Acre Reallocation and Yield Updates: September 29, 2014 through February 27, 2015 Election of ARC-CO, ARC-IC, or PLC for 2014- 2018 Program Years – November 17, 2014 through March 31, 2015 ARC/PLC Annual Enrollment for 2014-2015 crop years – Proposed for Mid-April through Summer of 2015 FSA 2014 Farm Bill TrainingMontana Producer Meetings5

6. Agricultural Act of 2014 Payment Limitations $125,000 for ARC/PLC payments received directly or indirectly for all covered commodities except peanuts NOTE:Included in each of the $125,000 payment limitations are payments received through Marketing Assistance Loan gains and Loan Deficiency Payment (LDP) programs. FSA 2014 Farm Bill TrainingMontana Producer Meetings6

7. Agricultural Act of 2014 Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) Overview FSA 2014 Farm Bill TrainingMontana Producer Meetings7

8. Agricultural Act of 2014 3 Step Process 1.Update (Base Reallocation and Yield Update) 2.Elect (One-time program election) 3.Enroll (Annual enrollment contract) FSA 2014 Farm Bill TrainingMontana Producer Meetings8

9. Agricultural Act of 2014 Step 1: Update Review acreage history letter that was mailed in July to all producers. Ensure that planted and prevented planting credit is accurately listed for the 2008-2012 crop years. – This data will be used for base reallocation and yield updating. Gather crop yield records for 2008-2012 crop years. FSA 2014 Farm Bill TrainingMontana Producer Meetings9

10. Agricultural Act of 2014 Example Letter FSA 2014 Farm Bill TrainingMontana Producer Meetings10

11. Agricultural Act of 2014 Step 1: Update Visit your local FSA office to make a final decision on Base Reallocation and Yield Updates: Once crop acreage is updated for years 2009 - 2012 and yields are certified for crop years 2008- 2012, a farm OWNER will make choice of base option and yield update option. FSA 2014 Farm Bill TrainingMontana Producer Meetings11

12. Agricultural Act of 2014 Step 2: Elect Elect PLC, ARC-CO or ARC-IC on each FSA Farm Number: CURRENT PRODUCERS with a share of the cropland on the farm will make a 1-time irrevocable program election per farm. Failure to make an election will result in a default PLC election effective 2015 through 2018 and NO payments will be made for 2014. FSA 2014 Farm Bill TrainingMontana Producer Meetings12

13. Agricultural Act of 2014 Step 2: Elect Final Notice of Base, Yield and Election: Once the owner elects to update or retain current records, and all current producers make a program election, owners, operators and other tenants on the farm will receive the “Final” base, yield and election notice. FSA 2014 Farm Bill TrainingMontana Producer Meetings13

14. Agricultural Act of 2014 Step 3: Enroll Annual Enrollment Contract to Participate on a farm: An enrollment period will be: Held for program years 2014 & 2015 simultaneously  Mid-April 2015 – Summer 2015 Completed for each year 2014 – 2018. FSA 2014 Farm Bill TrainingMontana Producer Meetings14

15. Agricultural Act of 2014 Additional Program Requirements Acreage & Production Reporting: Producers are required to annually report all cropland acres on enrolled farms on a FSA- 578, same as in past programs Production Reporting required for ARC-IC only FSA 2014 Farm Bill TrainingMontana Producer Meetings15

16. Agricultural Act of 2014 Payments 2014 payments will be issued after October 1, 2015 for PLC/ARC-CO/ARC-IC if triggered 2015 – 2018 payments are issued after MYA prices are determined and after October 1 of the subsequent year FSA 2014 Farm Bill TrainingMontana Producer Meetings16

17. Agricultural Act of 2014 Base Acres FSA 2014 Farm Bill TrainingMontana Producer Meetings17

18. Agricultural Act of 2014 Base Acreage or “Covered Commodities” BarleyCanolaCorn CrambeFlaxseedGarbanzo, Large Garbanzo, SmallGrain SorghumLentils Mustard SeedOatsPeanuts Peas, DryRapeseedRice, Long Grain Rice, Medium GrainSafflowersSesame Seed SoybeansSunflower SeedWheat FSA 2014 Farm Bill TrainingMontana Producer Meetings18

19. Agricultural Act of 2014 Reallocation of Base Acres A farm owner may choose between two “Base Election” options for 2014 base acres on a farm: RETAIN base acres in effect as of 9-30-2013 Base acres may be adjusted for CRP - exit or enrollment. REALLOCATE base acres using 2009-2012 planted/considered planted history, as reported on the FSA-578 (Base acres cannot INCREASE) NOTE: The decision to reallocate is made by an OWNER of the farm. FSA 2014 Farm Bill TrainingMontana Producer Meetings19

20. Agricultural Act of 2014 Reallocation of Base Acres (continued) Reallocation of bases will result in the farm’s base acres being redistributed in the same proportion to the 4 year average of acres that were Planted and Considered Planted to covered commodities during the 2009 – 2012 crop years. FSA 2014 Farm Bill TrainingMontana Producer Meetings20

21. Agricultural Act of 2014 Reallocation of Base Acres (continued) Planted and Considered Planted (P&CP) history includes Initial, Initial Failed & Initial Prevent Plant. Reallocation of bases allows for a “Subsequent” crop provision. “initial covered commodity crop” is followed by a “subsequent covered commodity”, the owner of the farm may select EITHER crop to be used for base reallocation calculations. FSA 2014 Farm Bill TrainingMontana Producer Meetings21

22. Agricultural Act of 2014 Reallocation of Base Acres (continued) EXAMPLE of Subsequent Crop Eligibility 2012:Farm #100, Tract #1000 60 acres of winter wheat – initial failed 60 acres of barley – subsequent crop The farm owner must select which crop to include in the reallocation of base decision, 60 acres if winter wheat or 60 acres of barley, BUT NOT BOTH. FSA 2014 Farm Bill TrainingMontana Producer Meetings22

23. Agricultural Act of 2014 BASE REALLOCATION EXAMPLE #1 Wheat Base: 500.0 acres Barley Base:100.0 acres Oat Base: 50.0 acres TOTAL BASE:650.0 acres FSA 2014 Farm Bill TrainingMontana Producer Meetings23

24. Agricultural Act of 2014 BASE REALLOCATION EXAMPLE #1 FSA 2014 Farm Bill TrainingMontana Producer Meetings24

25. Agricultural Act of 2014 BASE REALLOCATION EXAMPLE #2 Wheat Base:500.0 acres Barley Base:300.0 acres TOTAL BASE:800.0 acres CROP HISTORY CROP2009201020112012 Wheat700.0600.0700.0600.0 Alfalfa 150.0 FSA 2014 Farm Bill TrainingMontana Producer Meetings25

26. Agricultural Act of 2014 BASE REALLOCATION EXAMPLE #2 FSA 2014 Farm Bill TrainingMontana Producer Meetings26

27. Agricultural Act of 2014 BASE REALLOCATION EXAMPLE #3 Wheat Base:400.0 acres Barley Base:100.0 acres CROP HISTORY CROP2009201020112012 Wheat0000 Barley0000 Alfalfa500.0 400.0 Dry Peas000100.0 FSA 2014 Farm Bill TrainingMontana Producer Meetings27

28. Agricultural Act of 2014 BASE REALLOCATION EXAMPLE #3 FSA 2014 Farm Bill TrainingMontana Producer Meetings28

29. Questions on Base Reallocation? FSA 2014 Farm Bill TrainingMontana Producer Meetings29

30. Agricultural Act of 2014 Yield Update FSA 2014 Farm Bill TrainingMontana Producer Meetings30

31. Agricultural Act of 2014 Payment Yield Update Option On a “Crop by Crop” basis the owner of a farm has the following options: 1.Retain the farm’s/crop’s Counter-Cyclical (CC) yield from the 2008 Farm Bill (NOT Direct yield) 2.Update the farm’s/crop’s yield based on 90% of the farms 2008-2012 “average yield” per “planted” acre, excluding years of zero plantings/prevent plant. NOTE: 75% of County Average Yield will be “substituted” for years in which there is a low yield and/or no production/yield available for planted acres FSA 2014 Farm Bill TrainingMontana Producer Meetings31

32. Agricultural Act of 2014 Payment Yield Update Option Example #1 1 Year average of Planted acreage (60/1=60) Farm #1 Wheat CC Yield: 35 bu/ac Crop Wheat 20082009201020112012Total Average Yield PLC Yield (90%) Zero plant 60 Zero plant 60 54 bu/ac Average CO Yield (75%) 30 FSA 2014 Farm Bill TrainingMontana Producer Meetings32

33. Agricultural Act of 2014 Payment Yield Update Option Example #2 5 Year Average of Planted acres (39+40+35+42+30=186/5=37) Farm #1 Wheat CC Yield: 35 bu/ac Crop Wheat 20082009201020112012Total Average Yield PLC Yield (90%) 39 40 35429 186 37bu/ac 33 bu/ac Ave. CO Yield (75%) 30 FSA 2014 Farm Bill TrainingMontana Producer Meetings33

34. Agricultural Act of 2014 Payment Yield Update Option Example #3 4 Year Average of Planted acres (30+54+52+52=188/4=47) Farm #1 Wheat CC Yield: 38 bu/ac Crop Wheat 20082009201020112012Total Average Yield PLC Yield (90%) Zero Plant Planted No Evidence 5452 188 47 bu/ac 42 bu/ac Avera ge CO Yield (75%) 30 FSA 2014 Farm Bill TrainingMontana Producer Meetings34

35. How to Update PLC Yields Gather production records for the 2008 – 2012 crop years –NOTE: Do NOT bring your production records to the County FSA Office at this time. We are NOT accepting this documentation from producers. Report your per/acre production figure on form CCC- 859, which may be obtained from your local FSA office Make your yield update decision and certify to the applicable yields on the CCC-858 by February 27, 2015 Maintain records of production for the life of the farm bill, as FSA is required to spot-check PLC yield certifications. FSA 2014 Farm Bill TrainingMontana Producer Meetings35

36. How to Update PLC Yields NOTE: This is a ONE-TIME opportunity to update your crop yields at FSA, regardless of the program option that you choose. FSA 2014 Farm Bill TrainingMontana Producer Meetings36

37. Yield Options Base & Yield Update - 4 Options: 1)Retain the farm’s bases and yields. 2)Retain the farm’s bases and update one or more crop yields 3)Reallocate the farm’s bases and retain all yields 4)Reallocate the farm’s bases and update one or more crop yields. Montana Producer MeetingsFSA 2014 Farm Bill Training37

38. What about CRP? Base acres that were reduced for participation in CRP can be restored to the farm when the CRP contract expires, is voluntarily terminated or early released. After September 30, 2013 – already restored and available for reallocation and yield updates After September 30, 2014 – bases will be restored as they were reduced. Will have the yield that is on the farm upon restoration. Montana Producer MeetingsFSA 2014 Farm Bill Training38

39. Questions on Yield Updating? FSA 2014 Farm Bill TrainingMontana Producer Meetings39

40. Program Election FSA 2014 Farm Bill TrainingMontana Producer Meetings40

41. Agricultural Act of 2014 Program Election All current owners, operators and tenants with an interest in the cropland on the farm MUST agree to the program ELECTION. The 2014 program Election remains in effect through 2018. Program Election remains ON THE FARM NOTE: Failure to make a unanimous program election during the designated election period of November 17, 2014 through March 31, 2015 will result in a default designation to PLC effective 2015-2018 and THE LOSS OF ALL ARC/PLC payments for the farm in 2014. FSA 2014 Farm Bill TrainingMontana Producer Meetings41

42. Agricultural Act of 2014 Program Election ELECTION is Farm By Farm If ARC-CO or PLC is selected on a Farm: Each Covered Commodity will have a PLC or ARC- CO election option RMA’s SCO – is an option for crops with a PLC election FSA 2014 Farm Bill TrainingMontana Producer Meetings42

43. Agricultural Act of 2014 Program Election (continued) If ARC-IC is selected on a Farm: All covered commodities planted on the farm are ARC-IC crops. PLC is NOT an option for the farm ARC-CO is NOT an option for the farm RMA’s SCO - is NOT an option for any crop on the farm FSA 2014 Farm Bill TrainingMontana Producer Meetings43

44. Questions on Program Election? FSA 2014 Farm Bill TrainingMontana Producer Meetings44

45. Agricultural Act of 2014 Price Loss Coverage (PLC) FSA 2014 Farm Bill TrainingMontana Producer Meetings45

46. Agricultural Act of 2014 Price Loss Coverage Payments made when effective price is less than the reference price for a covered commodity. Effective Price is the higher of Marketing year Average Price (MYA) for the crop or the National Loan Rate for the crop. Payments made on 85% of base acres of the covered commodity. Payments are made regardless of the planting of the covered commodity. FSA 2014 Farm Bill TrainingMontana Producer Meetings46

47. Agricultural Act of 2014 PLC – Examples of Reference Prices Wheat - $5.50/bu Barley - $4.95/bu Corn - $3.70/bu Lentils - $0.1997/lb Dry Peas - $0.1100/lb Safflower - $0.2015/lb Large Chickpeas - $0.2154/lb Small Chickpeas - $0.1904/lb FSA 2014 Farm Bill TrainingMontana Producer Meetings47

48. Agricultural Act of 2014 Price Loss Coverage Example Farm #1: Barley Base: 1000 acres PLC Yield: 50 bu/ac Reference price for barley= $4.95/bu. Market Year Average (MYA) price= $4.50/bu (example only) The national average loan rate= $1.95/bu. PLC PAYMENT CALCULATION: $4.95 - $4.50 = $0.45/bushel payment rate. 1000 base ac x 85% x 50 bu PLC yield x $0.45 = $19,125 payment FSA 2014 Farm Bill TrainingMontana Producer Meetings48

49. Questions on PLC? FSA 2014 Farm Bill TrainingMontana Producer Meetings49

50. Agricultural Act of 2014 Agricultural Risk Coverage County Option ARC-CO FSA 2014 Farm Bill TrainingMontana Producer Meetings50

51. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-CO) Payments made when the ARC-CO Actual Revenue is less than the ARC-CO Guarantee for a covered commodity. County data is used, not individual farm data. The payment rate can be no higher than 10% of the ARC-CO Benchmark Revenue for the covered commodity. Payments made on 85% of base acres of the covered commodity. Payments are made regardless of the planting of the covered commodity. FSA 2014 Farm Bill TrainingMontana Producer Meetings51

52. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-CO) Example: Farm #1: Wheat Base = 500 acres Step 1: Calculate county benchmark revenue for WHEAT Step 2: Calculate the county guarantee for WHEAT Step 3: Calculate actual county revenue for WHEAT Step 4: Determine of the county suffered a loss for WHEAT Step 5: Calculate Payment FSA 2014 Farm Bill TrainingMontana Producer Meetings52

53. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-CO) Step 1: Wheat ARC-CO Benchmark Revenue Calculation County Benchmark Yield = 5 year Olympic Average (40 bu/ac) County Benchmark Price = 5 year Olympic Ave of the higher of MYA or the Reference Price ($6.60) WHEAT20092010201120122013 Yield4046382442 70% of T- Yield 26 MYA Price$4.87$5.70$7.24$7.77$6.87 Reference Price $5.50 FSA 2014 Farm Bill TrainingMontana Producer Meetings53

54. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-CO) (continued) Wheat ARC-CO Benchmark Revenue Calculation: Benchmark Yield = 40 bu/ac Benchmark Price = $6.60/bu Benchmark Revenue = $264.00 (40 X $6.60) Step 2: Wheat ARC-CO Guarantee Calculation: Benchmark Revenue ($264) X 86% = $227.04/acre FSA 2014 Farm Bill TrainingMontana Producer Meetings54

55. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-CO) Step 3: Wheat ARC-CO Actual Revenue: (35 bu/ac X $5.90/bu = $206.50/acre) NOTE: Use higher of MYA price or National Loan Rate CROP 2014 CO Actual Yield (hypothetical) 2014 MYA Price (hypothetical) National Loan Rate Actual Revenue (hypothetical) WHEAT35$5.90$2.94$206.50/ac FSA 2014 Farm Bill TrainingMontana Producer Meetings55

56. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-CO) (continued) Step 4: ARC-CO Calculation: Wheat ARC-CO: Guarantee: $227.04 Actual Revenue: $206.50 Revenue Loss = $ 20.54/acre Note: Maximum Payment Rate would be $26.40 (Benchmark Revenue of $264/ac X 10%) Step 5: Payment computation for this example would be: Wheat base 500 acres X 85% X $20.54 = $8729.50 FSA 2014 Farm Bill TrainingMontana Producer Meetings56

57. Questions on ARC-CO? FSA 2014 Farm Bill TrainingMontana Producer Meetings57

58. Agricultural Act of 2014 Agricultural Risk Coverage Individual Option ARC-IC FSA 2014 Farm Bill TrainingMontana Producer Meetings58

59. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-IC) Payments are made when the collective Actual Revenue of all covered commodities planted in the farming operation for the current year is less than the collective ARC-IC Guarantee for the farming operation. The payment rate is the difference in the ARC-IC Guarantee and the ARC-IC Actual Revenue, but can be no higher than 10% of the ARC-IC Benchmark Revenue for all covered commodities on the farm. FSA 2014 Farm Bill TrainingMontana Producer Meetings59

60. Agricultural Act of 2014 Agriculture Risk Coverage – County (ARC-IC) The ARC-IC farm consists of all farms enrolled in ARC-IC within the state for the producer. The ARC-IC Revenues are calculated across ALL covered commodities planted on ALL farms If an ARC-IC payment is earned, the payment calculation will be as follows: Total base acres on the farm X 65% X ARC-IC payment rate X producer share FSA 2014 Farm Bill TrainingMontana Producer Meetings60

61. ARC-IC Highlights  ARC-IC is the ONLY program option that can generate a payment based upon losses that are directly tied to the crops being produced in the farming operation.  ARC-IC provides risk protection to producers that plant ANY of the 21 “covered commodities”, regardless of whether or not the farm has base acreage for that commodity. Montana Producer MeetingsFSA 2014 Farm Bill Training61

62. ARC-IC Overview FSA will compute benchmark revenue figures for each covered commodity crop that is planted in the current year, regardless of whether or not the producer has history of producing that crop. Current year revenue is determined based upon the production that is received from the ARC-IC farm, and does NOT include MPCI indemnities FSA 2014 Farm Bill TrainingMontana Producer Meetings62

63. ARC-IC – Example ARC-IC Payment Calculation - (Two Crops – One Farm): FSN 7400 Wheat Base: 1500 acres Barley Base: 500 acres Total Base Acres: 2000 Acres. Operator – 100% Share Planted Acres: Wheat: 1300 acres Dry Peas: 200 acres FSA 2014 Farm Bill TrainingMontana Producer Meetings63

64. ARC-IC – Example Payment Calculation Two Crops – One Farm: FSA 2014 Farm Bill TrainingMontana Producer Meetings64 Covered Commodities On ACR-IC Farm PLANTED ACRES Planted / Total Planted Producer Weighted % Planted Acres across all Farms Wheat 13001300 / 150086.67% Peas200 200/ 150013.33% Total1500

65. ARC-IC – Example Payment Calculation ARC-IC Benchmark Revenue Calculation for Wheat FSA 2014 Farm Bill TrainingMontana Producer Meetings65 Wheat 20092010201120122013 5-Year Olympic Average Revenu e Producer Weighted % Planted Acres Weighte d 5-year Olympic Average Yield 52 5558844 70% of T 26 MYA $4.87$5.70$7.24$7.77$6.87 Ref. Price $5.50 Revenu e $286$314$420$202$302$30186.67%$261

66. ARC-IC Benchmark Revenue Calculation for Dry Peas FSA 2014 Farm Bill TrainingMontana Producer Meetings66 Dry Peas 20092010201120122013 5-Year Olympic Average Revenu e Producer Weighted %Planted Acres Weighte d 5-year Olympic Average Yield 705 1700 1800 2100 1300 70% of T 700 MYA$0.0898 $0.0977 $0.1530$0.1570$0.1460 Reference Price $0.1100 Revenue $72$187$275$330$190$217%13.33$29 ARC-IC – Example Payment Calculation

67. ARC IC Weighted ARC-IC Benchmark (BM): Wheat BM Revenue: ($301x 86.67%) = $261 Dry Peas BM Revenue: ($217 X 13.33%) = $ 29 Total Farm Benchmark = $290 Weighted Guarantee: ARC-IC Farm Guarantee: $290 X 86% = $249/acre FSA 2014 Farm Bill TrainingMontana Producer Meetings67 ARC-IC – Example Payment Calculation

68. ARC-IC - C urrent Year Revenue: FSA 2014 Farm Bill TrainingMontana Producer Meetings68 CROP 2014 Total Production 2014 MYA Price National Loan Rate ARC-IC Total Revenue Wheat 40 bu/ac on 1300 ac 52,000 bu $5.90$2.94$306,800 Dry Peas 1400 lbs/ac on 200 ac 280,000 lbs $0.1250$0.0540$35,000 Total Revenue$341,800 ARC-IC Actual Revenue $341,800 / 1500 Total Planted Acres $228 ARC-IC – Example Payment Calculation

69. ARC-IC – Example ARC-IC Payment Calculation: ARC-IC Guarantee:$249 ($290 X 86%) ARC-IC Actual Revenue: $228 $21/payment acre Note: Payment rate CAP no more than 10% of the ARC-IC Benchmark Revenue ($290) or $29 in this example. Total Base Acres 2000 X 65% X $21 = $27,300 Producer Payment Share: $27,300 X 100% = $27,300. FSA 2014 Farm Bill TrainingMontana Producer Meetings69

70. ARC-IC Overview SMALL ACREAGE ILLUSTRATION In this example, assume that 2 acres of wheat and 1 acre of barley are seeded. Step 1: Calculate benchmark revenue per acre.  1 acre of wheat normally generates approximately $300 of revenue  1 acre of barley normally generates approximately $250 of revenue  Therefore, the average revenue per acre is $283 (300 + 300 + 250 = 850 / 3) FSA 2014 Farm Bill TrainingMontana Producer Meetings70

71. ARC-IC Overview SMALL ACREAGE ILLUSTRATION Step 2: Determine the producer’s ARC-IC guarantee.  $283 benchmark revenue x 86% = $243/acre Step 3: Determine actual revenue generated per acre.  2 acres of wheat x 40 bu/acre x $5.90/bu = $472 of revenue from wheat  1 acre of barley x 45 bu/acre x $5.00/bu = $225 of revenue from wheat  $472 + 225 = $697 / 3 acres = $232/acre of actual crop revenue FSA 2014 Farm Bill TrainingMontana Producer Meetings71

72. ARC-IC Overview SMALL ACREAGE ILLUSTRATION Step 4: Determine revenue loss  $243 (guarantee) - $232 (actual revenue) = $11/acre revenue loss Step 5: Determine ARC-IC payment  1000 total base acres x 65% x $11/acre = $7150 ARC-IC payment FSA 2014 Farm Bill TrainingMontana Producer Meetings72

73. Questions on ARC-IC?? FSA 2014 Farm Bill TrainingMontana Producer Meetings73

74. Summary Program Comparison FSA 2014 Farm Bill TrainingMontana Producer Meetings74

75. Agricultural Act of 2014 PLCARC-COARC-IC Price and Yield Comparison Uses MYA price and PLC yield Uses MYA price and “County” Average Yield Uses MYA price and producer’s historical yield on the farm(s) Base Acre Comparison Payment determined by individual covered commodity crop base acres Payment determined by planted covered commodities combined on the farm(s) in the State FSA 2014 Farm Bill TrainingMontana Producer Meetings75

76. Agricultural Act of 2014 PLCARC-COARC-IC Payment Acre Comparison Payments made on 85% of specific crop base acres on farm Payments made on 65% of TOTAL base acres on farm Production Reports Production report NOT required Requires annual production report of all covered commodities planted FSA 2014 Farm Bill TrainingMontana Producer Meetings76

77. Agricultural Act of 2014 PLCARC-COARC-IC Requirement to Plant? Planting of covered commodities NOT required Planting of covered commodities REQUIRED Program Election Comparison Elect by Covered Commodity Base Acres by farm May mix ARC-CO and PLC on same farm by base crop Elect by Covered Commodity Base Acres by farm May mix ARC-CO and PLC on same farm by base crop Elect on ALL Covered Commodities on the farm ARC-CO & PLC not eligible on farm 77FSA 2014 Farm Bill TrainingMontana Producer Meetings

78. Agricultural Act of 2014 PLCARC-COARC-IC When Do Payments Trigger? When the effective price of a base acreage commodity falls below reference price When the ACTUAL county revenue (per acre) of a base acreage commodity falls below the ARC-CO guarantee for that crop the county. When ACTUAL farm revenue from enrolled farms falls below the calculated ARC-IC guarantee for all enrolled farms in the state. 78FSA 2014 Farm Bill TrainingMontana Producer Meetings

79. Agricultural Act of 2014 Questions ??? FSA 2014 Farm Bill TrainingMontana Producer Meetings79