Posted April 10, 2014
The new farm bill includes many changes and farm services experts and agricultural accountants are offering advice on how to prepare for those possible business-changing decisions, according to a Farm Futures article available here.
Wayne Myers, Farm Program Services expert with Kennedy and Coe agricultural accountants, says there are ten things producers can do to prepare for those changes.
1. Invest in education to understand the technical components of the farm bill.
2. Read about the farm bill, including Federal Register notices of USDA rule making.
3. Follow trusted experts.
4. Use various tools to compare different scenarios with price and yield estimates.
5. Involve landowners in the educational process.
6. Consult a financial professional in long-term planning.
7. Analyze farm program crop bases and update individual crop base for a more accurate representation of planting of covered commodities.
8. Look at actual yields for the PLC program.
9. Consider commodity program experts if you have a large farming operation.
10. Review eligibility criteria such as “actively engaged in farming.”
North Dakota State University Extension farm management specialist Dwight Aakre also advises that farmers study various options and plan for the future in an article by Minnesota Farm Guide here.
Farmers and ranchers should become familiar with new commodity programs, PLC (Price Loss Coverage), ARC (Agricultural Risk Coverage), and SCO (Supplemental Coverage Option).
For more information on farm bills, please visit the National Agricultural Law Center’s website here.
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