Tuesday, July 17, 2012

Price Loss Coverage III

Okay, finally read the farm bill as of July 9 (link) re: price loss coverage.(See previous post here.)

The provision:
(A) IN GENERAL.—Except as provided in
13 subparagraphs (B) through (D), the term ‘‘pay-
14 ment acres’’, with respect to the provision of
15 price loss coverage payments and revenue loss
16 coverage payments, means—
17 (i) 85 percent of total acres planted
18 for the year to each covered commodity on
19 a farm; and
20 (ii) 30 percent of approved total acres
21 prevented from being planted for the year to each covered commodity on a farm.
23 (B) MAXIMUM.—The total quantity of pay24
ment acres determined under subparagraph (A)
25 shall not exceed the farm base acres.
(C) REDUCTION.—If the sum of all pay
2 ment acres for a farm exceeds the limits estab
3 lished under subparagraph (B), the Secretary
4 shall reduce the payment acres applicable to
5 each crop proportionately.
6 (D) EXCLUSION.—The term ‘‘payment
7 acres’’ does not include any crop subsequently
8 planted during the same crop year on the same
9 land for which the first crop is eligible for pay10
ments under this subtitle, unless the crop was
crop was
11 approved for double cropping in the county, as
12 determined by the Secretary.

 The line numbers carry over in the copy process.  There's two considerations in determining acreage accuracy: (1) potentially exceeding a limit, which is what my previous posts discussed; (2) the accuracy of payment acreage. Based on the above, I was wrong on (1)--there's no program limit to be violated.  The only thing which looks like a limit is the farm base acreage, but if it's exceeded you just prorate out, so no big deal.

(2) however looks a bit different.  If I under report my planted acreage, I get less payment, so no harm to the program. But if I over report, because my payments are calculated on planted acreage, there's overpayment, so FSA would need to handle that and deter such over reporting.

The provision would mean that reports of planted acreage are needed, which was a big battle back in Freedom to Farm days (bureaucrats always worry about workload).

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