Seed Cotton Options. Bipartisan Budget Act of 2018 (BBA) Seed Cotton/Generic Base August 2018

Transcription

1 Seed Cotton Options Bipartisan Budget Act of 2018 (BBA) Seed Cotton/Generic Base August 2018 Brandi Roper Tatum Dunklin County Ryan Eddy New Madrid County Chris Grojean Scott County Megan Dunkle Stoddard County Aaron Sandlin Butler County Dickie Jordan Mississippi County Calvin Elder Pemiscot County 1

2 Bipartisan Budget Act of 2018 Overview The Bipartisan Budget Act of 2018 (BBA) provides a onetime opportunity to: ALLOCATE Generic Base Acres for 2018 for: Farms with history of a P&CP Covered Commodity in 2009 through 2016 Farms without history of a P&CP covered commodity, , will convert generic base acres to Unassigned Generic Base Acres for which no payments will be made. 2

3 Seed Cotton Training July 25, 2018 Yield Update 3

4 Yield Update The 2018 BBA provides the following under the commodity title: A one-time decision to UPDATE CC Yields on a farm for new Allocated Covered Commodities where a PLC Yield does NOT exist 4

5 Yield Options Base & Yield Update Option 1: Convert Generic Base acres to Seed Cotton using higher of: 80% or planting history of upland cotton, RETAIN upland cotton CC yield, multiplied by 2.4. OR UPDATE upland cotton CC yield, multiplied by

6 Yield Options Base & Yield Update Option 2: Allocate the farm s Generic Base acres to planting history of covered commodities, RETAIN all CC yields for newly allocated covered commodities OR UPDATE CC yields for newly allocated covered commodities where a PLC yield does not currently exist on the farm. 90% of Planted Acreage - Yield history

7 Yield Update Update CC Yields for covered commodities where a PLC yield does NOT exist: Acres planted of covered commodities, , using simple average, excluding ZERO planted years. Substitute Yield (75% of County Average) is used in low yield year or where a yield is not available from the producer. Note: The Update option is available PER Crop regardless of program election PLC/ARC- CO/ARC-IC 7

8 Yield Example for Allocated Commodity Payment Yield Update Option Example #1 5 Year average of Planted acreage, using substitute ( =602/5=120) Farm #1 Crop Corn Corn CC Yield: 92/bu Total Average Yield PLC Yield (90%) /bu Substitute Average CO Yield (75%) 8

9 Farm #2 Crop Upland Cotton Average CO Yield (75%) Yield Example for Allocated Commodity Payment Yield Update Option Example #2 3 Year average of Planted acreage ( =3236/3=1079) Upland Cotton CC Yield: 536/lbs Total Average Yield PLC Yield (90%) Zero Plant Zero Plant /lbs Seed Cotton Yield: (Remember to multiple by 2.4) CC Yield = 536/lbs X 2.4 = 1286/lbs Updated Yield = 971/lbs X 2.4 = 2330/lbs 9

10 Substitute Yield Calculated at the County Level Administrative County of the farm, not Physical location of the land Calculation is 75% of the average yield in the county. And is the same yield for each of the crop years, when used. 10

11 Substitute Yield UPLAND COTTON LINT AND SEED COTTON SUBSTITUTE (75 percent of the average of county yields) County Name Upland Cotton Seed Cotton Yield Lint Yield (Lint Yield *2.4) Butler 749 1,798 Dunklin 755 1,812 Mississippi 703 1,687 New Madrid 789 1,894 Pemiscot 639 1,534 Scott 844 2,026 Stoddard 787 1,889 11

12 Substitute Yield A substitute yield is authorized in the yield update calculation for the following situations: Crop was planted on the farm in the crop year, The certified yield is low due to disaster Certified yield data (records) is unavailable Part of the acreage yield is missing (unavailable) where a partial plug may be used on those acres. 12

13 Substitute Yield Partial Plug When owner(s) of a farm cannot obtain production records from ALL acres of the crop on the farm: Assign substitute yield for those acres Use certified yield data from the acreage the producer did have an interest Total assigned production (substitute yield) and certified production from all tracts/fields in the applicable year is divided by total planted acres of the crop NOTE: Producer can use the HIGHER of the resulting yield or substitute yield for that year. 13

14 Irrigated/Nonirrigated Yields Statute does not allow for IR and NI PLC payment yields PLC yields for IR and NI crops will have a blended yield, if updated. Owner(s) having both IR and NI for a crop must blend when certifying a yield for update purposes. NOTE: Under ARC-CO, the IR and NI covered commodity counties may have a separate guarantee established by practice if the county meets the IR/NI planting ration established by DAFP 14

15 Yield Update - Decision The owner(s) decision on the farm: Retain or Update the applicable crops yield for New allocated commodities where a PLC yield does not exist. NOT tied to the program elected PLC, ARC-CO or ARC-IC Will allow the yield to reside on FSA farm records for the duration of the farm bill and available for future farm bills, if applicable. 15

16 Yield Update - Decision Only ONE owner on the farm must sign for the yield update decision. Person with POA can sign for Owner: All Current and Future Programs and All Actions must be marked on the POA The owner will certify yields on a CCC-864 Yield Choice (retain or update) & Base Choice is completed on a CCC-865. Owner is certifying to having consent of all owners on the farm to make the base and yield update decisions 16

17 Yield Certification Form 17

18 Yield Certification The owner must be prepared to submit records used to certify updated yields, if requested by FSA in the future. RMA records are acceptable records Use of RMA production data to certify yields is encouraged. RMA-APH CANNOT be used. Yields supported by RMA yield data is considered to have met FSA review/spot-check criteria. Yields on an FSA-658 for ACRE may be used as evidence to support yield certification. NAP yield data at FSA can be used. 18

19 Spot-Check Policy For 2018, a sample of yield reviews will be completed for new allocated covered commodities under BBA provisions. National Spot Check Selection Yields over 125% of County Average PLC yield RMA data is considered production evidence for FSA review purposes Producers must have records for review upon request. 19

20 Bipartisan Budget Act of 2018 Farms meeting the Covered Commodity P&CP history requirement, have: Two Options for ALLOCATING Generic Base Acres for

21 Generic Base Allocation Option 1 2 Options Convert generic base acres to Seed Cotton base acres to the HIGHER OF: 1A: 80% of generic base acres on the farm, with 20% unassigned generic base acres 1B: Simple Average of P&CP Upland Cotton Only not to exceed the generic base acres on the farm remaining generic base acres become unassigned generic base acres 21

22 Option 2 Generic Base Allocation 2 Options Convert generic base acres according to: Simple 4-year average of each P&CP covered commodity; including upland cotton, In proportion to Total P&CP acres of all covered commodities; including upland cotton, % of generic base is allocated 22

23 Generic Base Acre Allocation Basic Provisions Who makes the allocation decision? Any current owner of record Definition: The person or legal entity who is the owner on the date the action is actually performed Signature Requirements Only one signature is required By signing the CCC-865, the owner is certifying to having the consent of all owners on the farm to make the generic allocation decision Power Of Attorney signature is allowed IF All Current and Future Programs/All Actions is checked on the FSA

24 Generic Base Acre Allocation Basic Provisions Disputes If any current owner subsequently submits a conflicting generic allocation request: No generic allocation will be approved for the farm UNTIL ALL current owners of the farm provide CCC with written evidence of the dispute resolution During the allocation period 24

25 Generic Base Acre Allocation Basic Provisions An increase in total base acres on the farm, as of September 30, 2013, is not allowed Failure to allocate by the end of the allocation period Default to Option 1 25

26 Generic Base Acre Allocation Basic Provisions Subsequent Covered Commodities Owner may select either: The initial crop OR The subsequent crop To count in the allocation calculation UNLESS the initial and subsequent crops are approved double crops THEN Both crops are included in the allocation calculation 26

27 Generic Base Acre Allocation Basic Provisions Unassigned Generic Base Acres Definition: Generic base acres left over after allocation under Option 1 is completed Will be maintained in Farm Records Ineligible for ARC or PLC payments May be reduced for: CRP participation Out-of-Balance Tract correction Considered free acres for FAV planting 27

28 Generic Base Allocation EXAMPLES 28

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35 County Office Deadlines Turn in Crop Yields and Option Choice by August 27, 2018 to allow FSA staff to load in database. The deadline to make yield and Generic base acre allocation decision is: SEPTEMBER 28, 2018 Farm Records Rollover 35

36 Generic Base Allocation QUESTIONS? 36