One-time Election Needed for Farm Bill Programs
Neiffer: “What is important for farmer to know this year — and we are waiting on regulations from USDA — is farmers have to make a one-time election to take either ARC or to take PLC with the SCO. If they don’t make the one-time election this year, they do not get any payment for this year and they are automatically covered by PLC. And I think for most wheat farmers, corn farmers — the normal larger crop farmers — I’m guessing based on what I can tell from the Farm Bill right now, that they are going to lean towards electing ARC not PLC; but ever farm is going to be different. And part of it too is that we have to wait for the USDA and Crop Insurance Agency, the corporation to come out with their premiums on the SCO to really know what is best option for farmers. Again, this is covering the 2014 to 2018 crop years and you have to make the election now and it locks you in for all the five years of the Farm Bill so you do have to use your crystal ball to figure out what makes the most the sense.”
If you are interested in learning more go to Neiffer’s blog, Farm CPA Today.com.