Table 1: Reference prices ($); set in 2014 farm bill.| Wheat | 5.50/bu | | Corn | 3.70/bu | | Grain sorghum | 3.95/bu | | Barley | 4.95/bu | | Oats | 2.40/bu | | Long grain rice | 14/cwt | | Med. grain rice | 14/cwt | | Soybeans | 8.40/bu | | Other oilseeds | 20.15/cwt | | Peanuts | 535/ton | | Dry peas | 11/cwt | | Lentils | 19.97/cwt | | Small chickpeas | 19.04/cwt | | Large chickpeas | 21.54/cwt |
Table 2: ARC-County: corn calculation example| Year | MYA price | County yield |
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*The 2009 MYA price of $3.55 is replaced by the reference price of $3.70 following the rules in the 2014 farm bill.
**$4.50 is the current estimate of the MYA price for the 2013 corn crop. | | 2009 | 3.70* | 183.0 | | 2010 | 5.18 | 180.4 | | 2011 | 6.22 | 165.7 | | 2012 | 6.89 | 156.7 | | 2013 | 4.50** | 185.0 | | 5-year Olympic average | 5.3 | 176.4 | | Benchmark revenue | $935 = 5.30 X 176.4 | | Guarantee | $804 = 935 X 0.86 |
In this example, a payment is made if the 2014 ARC-County actual crop revenue is less than this ARC-County revenue guarantee of $804. Suppose the MYA price for corn turned out to be $3.90/bu and the actual county yield turned out to be 189 bu/acre. The ARC-County actual crop revenue is $737 in this example which is $3.90 multiplied by 189 bu/ac. Since $737 is less than the guarantee of $804, a payment is triggered. Under the ARC-County choice, the payment rate per acre is the difference between the ARC-County guarantee and the actual revenue, but the payment rate cannot exceed 10% of the benchmark revenue.
Edited by zenfarm 11/30/2015 18:23
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ND farmers lose money with ARC County.
