Verified FBN Member (SD)

(edited) Marketing

If you were not 100% prevent plant but had very poor yields in 2019 - have you looked into ARC-IC?

My AE encouraged me to post this for discussion. I know everyone who had 100% prevent plant farms were encouraged to sign up for ARC-IC, but I had also read articles that stated instances when ARC-IC could be considered specifically 100% prevent plant or low yields.

We had few prevent plan acres but planted fields had terrible yields (1 farms had 2 / 5 fields total loss (zero’d out oats), 2 / 5 yielded 20-30 bu soybeans, and 1 field of OK-ish corn so I investigated ARC-IC for that farm only until I realized we needed to consider it for all our farms.

Local FSA had educational meetings and online calculator tools links given. I enclosed a a link to download the updated calculator of University of Illinois - I used this one for PLC, ARC-CO, and ARC-IC.

A word of warning the ARC-IC calculator looks extremely daunting and it is. I was able to obtain the correct info needed from FSA (FSA-156EZ Abbreviated 156 Farm Record) and crop insurance (the official 2019 yield/acres on file and CCC-867 Yield update for PLC (which is the same form your agent will need to pull together eventually if you intend to update your PLC later this year). You can also do your own calculations using the MCPI Production Reporting Form from Crop Insurance.

I enclosed pictures of 3 farm ARC-IC calculation plus my spreadsheet summarizing the ARC-CO and PLC projections for Brule County SD but I changed our actual data to fictional values that produced the exact same expected payments (I hope that makes sense).

The long and short is that (for us due to terrible yields) going ARC-IC for ALL of our farms yielded potential payments 3 times larger than any combination of PLC and/or ARC-CO.

I do not want to stir up controversy and I am not implying anyone should make the same decision that we made. I am just passing along the information I discovered so others can consider all options before committing to their govt program.

**A word of caution that we received from our FSA agents you must be aware that farms signed in ARC-IC will stay that way for 2019-2020. So if you plant even 1 acre on an ARC-IC farm and all the rest is prevent plant your revenue calculation will be made on that single acre meaning you could end up with 0 payment if that single acre yields above your historical and the MYA price is decent. I have come to terms with this risk by repeating my mantra …. “a bird in the hand…”

Caution **** Before you use the calculator ***** I am EXTREMELY detailed and mathematical. I did not trust the calculator so I researched USDA website for EXACTLY how the payments are calculated. Then I did all calculations by hand to recheck the U of Illinois values. There is an issue with the “arc-ic” calculator (5th tab from left) but the “arc-ic-multi” (6th from left) works fine and agrees with manual calculations. I welcome verification of my calculations.

Article about working the calculator:

https://farmdocdaily.illinois.edu/2020/02/arc-ic-payment-examples-and-revised-2019-arc-ic-payment-calculator.html

Download calculator:

https://farmdoc.illinois.edu/2018-farm-bill

***********

    If you were not 100% prevent plant but had very poor yields in 2019 - have you looked into ARC-IC?
    If you were not 100% prevent plant but had very poor yields in 2019 - have you looked into ARC-IC?
    If you were not 100% prevent plant but had very poor yields in 2019 - have you looked into ARC-IC?
    +2

9


Verified FBN Member (SD)

Yes, I agree. We have 5 farms where arc-ic seems to be the right choice and 3 where arc-co or plc would most likely pay out better. Each op...

More

8

Verified FBN Member (SD)

Were you're 5 farms on arc-ic 100% prevent plant? Or did you have poor yields?

Verified FBN Member (SD)

10% pp. Poor yields in 2019. Our yield history was 30-40% higher. You related to ***?

Verified FBN Member (SD)

Okay that was very similar to our situation. Yes - *** belongs to *****'s first cousin. Her folks live just a few miles from us.

Verified FBN Member (SD)

Ok, she went to college with my wife and I. I think we are both on the right track regarding the farm program selections.

Verified FBN Member (SD)

Thank you for your input because this makes me feel better - my FSA agent thought we were nuts.

Verified FBN Member (ND)

(edited)

If the fsa thinks your nutts then your doing something right. Remember it's there money and they don't want to give it away unless they hav...

More
Verified FBN Member (SD)

Thanks. Sometimes doing what everyone else does is not the right thing but I must say our FSA agents are outstanding and they truly work har...

More

Welcome! You only have 2 free posts remaining.

Our FBN ® Community Forum is exclusive to . To become a Verified Farmer, sign up for your free account and gain access to our secure online farming community.