New Mexico Power of Attorney by itd16229

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									What’s New in the
 2002 Farm Bill?

Extension Outlook Conference
     Tunica, Mississippi
      September, 2002

         J. Novak
     Auburn University
 What’s New in the 2002 Farm Bill?

         Commodity Title

     Loan Rate Announcements
    Livestock Disaster Assistance
       Appropriations Process
Loosening Requirements for Updating
         Power of Attorney
   What’s New in the 2002 Farm Bill?



Sec Venneman said (9/17) implementation
    on schedule and farmers will receive
          DCP payments on time.

 Sign-up commodity program will begin
     Oct. 1 with payments soon after.
  What’s New in the 2002 Farm Bill?

 MILC program sign up started 8/13
   payments will begin next month.

Peanut program sign-up started 9/3 and
 ends 11/22. Payments will begin as soon
             as rule is issued.
   What’s New in the 2002 Farm Bill?

Final rules on sugar published - 2002 marketing
        allotments for beet and cane sugar.

 Final rules for WRP and WHIP published in
                     July.

Loan rates announced with some adjustments to
     those established by Congress, causing
                  consternation.
       What’s New in the 2002 Farm Bill?
         Info Needed For Yield Update
• Actual Verifiable Records
   –   Weight Tickets
   –   LDP’s on File
   –   Crop Insurance Appraisals
   –   Sales Records
• If no records for on farm use of crop, grazed,
  silage..FSA County Committee may assign
  yield based on 3 similar farms in the county.
• Sign-up for update will start in a couple of
  weeks.
• Actual documentation not necessary but must
  be available for spot-check.
 What’s New in the 2002 Farm Bill?


– Powers of Attorney now being signed.
   • POA Forms must be witnessed and notarized.
   • Copy in the back of room.


– April 1, 2003 end date for base and yield
  update.

– June 2, 2003 end of sign-up for DCP.
      What’s New in the 2002 Farm Bill?


• Issues
  –   Regulations?
  –   What’s going to be funded and what isn’t?
  –   Disaster Relief?
  –   Crop Insurance use revisited.
  –   Lawsuits.
  –   Complaints.
   What’s New in the 2002 Farm Bill?

• Regulations?
  – Bits and pieces are coming out.
  – Those that have come out are being shot at.
  – Complaints are emerging over loan
    rates/interpretations of the FSRIA.
  – Appropriations process is holding up the
    show.
  – Lawsuit has been filed over the MILC
    transition payment provisions.
    What’s New in the 2002 Farm Bill?
• Issues
   – Oilseed, pulse crop and wheat loan rates are
     being questioned by commodity groups and
     Congress.
      • Oilseeds $.096 set in FSRIA but USDA set at
        $.0915 cents.
      • Sunflowers (all) $.096/lb but USDA set different
        rate for oil-type and confectionary sunflowers.
      • Flax set at $.0698
      • No loan for Crambe.
      • Loan for Dry Peas ($6.33/cwt), Lentils
        ($11.94/cwt) and Small Chickpeas ($7.56/cwt)
        will apply only to #1 grade. Others grades to be
        deeply discounted.
   FSRIA Marketing Loan Rates
                       1996 Farm Bill        2002 Farm Bill
Commodity
                         2001 Rate      2002-2003      2004-2007
Corn (bu)                 $1.89          $1.98           $1.95
Sorghum (bu)              $1.71          $1.98           $1.95
Barley (bu)               $1.65          $1.88           $1.85
Oats (bu)                 $1.21          $1.35           $1.33
Wheat (bu)                $2.58          $2.80           $2.75
Soybeans (bu)             $5.26          $5.00           $5.00
Minor oilseeds (cwt)      $9.30          $9.60           $9.30
Upland cotton (lb)       $0.5192         $0.52           $0.52
Rice (cwt)                $6.50          $6.50           $6.50
Peanuts (ton)             $355           $355            $355
  FSRIA Marketing Loan Rates
Commodity             2002-2003   2004-2006
Small Chickpeas (cwt.) $ 7.56        $7.43
Lentils (cwt.)          $11.94      $11.72
Dry Peas (cwt.)         $ 6.33      $ 6.22
Honey (lb.)             $ 0.60      $ 0.60
Graded Wool (lb.)       $ 1.00      $ 1.00
Nongraded Wool (lb.)    $ 0.40      $ 0.40
Mohair (lb.)            $ 4.20      $ 4.20
Unshorn Pelts (lb.)     $ 0.40      $ 0.40
      Announced FSA Loan Rates

Type of Oilseed        Loan Rate
Oil-type Sunflower      $0.0915
Other-type Sunflower    $0.1210
Flaxseed                $0.0698
Canola                  $0.0949
Rapeseed                $0.0947
Safflower Seed          $0.1253
Mustard Seed            $0.0988
     Announced FSA Loan Rates


• Grades and quality adjustments made in
  the loan rates as in the past.
  – Peanuts
    •   Runner Peanuts     $355.72
    •   Spanish Peanuts    $337.20
    •   Valencia Peanuts   $353.66
    •   Virginia Peanuts   $353.66
 FSA Announced Loan Program
– Wheat loan rates differentiated by class:
   • hard red spring (HRS)
   • hard red winter (HRW)
   • soft red winter (SRW)
   • soft white wheat (SWW)
   • durum (DUM)
– The hard white wheat (HWW) loan rate is equal to
  the HRW loan rate
– The DUM wheat loan rate is applicable for all
  subclasses of durum.
    What’s New in the 2002 Farm Bill?
• Issues
   – Oilseed, pulse crop and wheat loan rates are
     being questioned by commodity groups and
     Congress.

   – USA Dry Pea and Lentil Council accuses
     FSA of being misinformed on prices.

   – “They’ve unilaterally taken money out of the
     farm bill that was intended to go to
     farmers.” – Sen. Conrad (D- N.D.)
   What’s New in the 2002 Farm Bill?

• Issues
  – MILC payments
     • Criticism for not allowing producers to pick
       when to begin receiving retroactive payments.
       FSA says start either Sept 2002 or Dec 1, 2002.

     • 16 Large dairy producer suit (Ohio, Michigan,
       New Mexico, Texas, Indiana, Tennessee) over 2.4
       million cap applying on both transition and
       annual payments in a year.
   What’s New in the 2002 Farm Bill?

• Issues – What’s Funded?
  – Status of FY 03 Appropriations Bills
     • None as yet passed
     • Ag. Appropriations Bills HR5263 and S2801.
     • Voted out of House and Senate Ag Committees
     • House Ag. Report H.Rpt.107-623 on 7/11/02.
     • Senate Ag. Report S.Rpt. 107-223 on 7/25/02.
     • So…FSA left to find money from other sources for disaster
       relief.
     • “Interior bill is still being debated in the Senate and action
       on a final bill could be delayed until this winter…” – Rep.
       Thune (R-S.D.)
    What’s New in the 2002 Farm Bill?
• Issues – Ag. Disaster
   – Secretary Ag. declared 22 states ag disaster areas.
   – Senate put disaster relief on the front burner,
     passed $5.9 billion aid package for farmers hit by
     drought, flood, and other.
   – Funding in the Interior Appropriations bill (CBO
     estimated $5.9 billion). Sen Craig (R-Idaho)
     predicts ultimate outcome $3 billion.
   – Ag Disaster relief tied up with the new farm bill.
     Administration wants funding for disaster relief to
     come from funding for the new farm bill, holding up
     consideration in House.
   What’s New in the 2002 Farm Bill?

• Administration initiated agricultural
  disaster relief for selected counties in 22
  states in form of low interest loans,
  emergency haying and grazing on CRP
  nationally.
  – (40% loss criteria no longer applies, CRP
    payment rate reduced 25%, state FSA
    committees have some discretion on
    allowing).
    What’s New in the 2002 Farm Bill?

• FSA left to find money from other sources for disaster
  relief.
• Found $752 Million for Livestock Compensation
  Program.
• Section 32 (customs fees) tapped for this program.
      • Assistance on county, not statewide, basis and focused on
        cattle. Some sheep but mostly cattle. Western and Central
        plains most impacted.
• OMB says money for ag disaster programs should
  come out of FSRIA which would affect south.
    What’s New in the 2002 Farm Bill?

•   Section 32 (customs fees) tapped…
    –   Sec 32 permanent approp. since 1935 uses
        30% of customs receipts to support US ag
        sector ($6 billion available in FY 2002)
          1. Purchases farm commodities
          2. School lunch program and child nutrition
             reimbursements
          3. Smaller amounts dedicated to disaster assistance,
             emergency commodity purchases, and other
             contingencies.
        What’s New in the 2002 Farm Bill?

•   Livestock Compensation Program 9/19/02
    –   Direct payment to cattle, sheep, bufallo,
        beefalo producers for losses in 01-02 due to
        drought.
    –   Counties must have received primary
        disaster designation due to drought in 01 and
        /or 2002.
    –   Sign-up October 1 with payments soon after.
    –   Cash assistance.
        What’s New in the 2002 Farm Bill?

•    Livestock Compensation Program 9/19/02
    –   S. Carolina statewide
    –   Specific Counties
        •   Georgia               Kentucky           Louisiana
        •   North Carolina        Oklahoma           Tennessee
        •   Texas                 Virginia
    –   Assistance
        •   Beef Cows                    $18/Hd
        •   Stockers                     $13.50/Hd
        •   Dairy Cows                   $31.50/Hd
        •   Buffalo and Beefalo          $18/Hd
        •   Sheep                        $4.50/Hd
        What’s New in the 2002 Farm Bill?

•   Livestock Compensation Program 9/19/02
    –   Producers will certify number of animals
        owned as of June 1, 2002.
    –   Animals must have been owned for 90 days
        or more before and/or after June 1.
    –   Animals Owned x Payment Rate = Amt Paid
    –   Subject to $2.5 Million AGI limit.
    –   Limited to $40,000 per person.
    What’s New in the 2002 Farm Bill?

          Commodity Disaster Payments?
• OMB says money should come out of FSRIA.
• Administration already initiated disaster relief for
  selected counties in 22 states.
• Allows low interest loans, emergency haying and
  grazing on CRP nationally
   – (40% loss criteria no longer applies, CRP rate reduced 25%,
     state FSA committees have some discretion on allowing).
• Administration says Congress should fund additional
  emergency assistance through budget offsets.
• But in any case…some assistance likely.
   What’s New in the 2002 Farm Bill?

             Political Football
• Administration says Congress should
  fund additional emergency assistance
  through budget offsets.
  – Counter Argument: Farm bill will likely cost
    $5 billion less than expected due to rising
    prices. So, should use that to fund disaster
    assistance. – Sen. Harkin (D-Iowa)
   What’s New in the 2002 Farm Bill?

                       Other
• Emergency Feed Assistance Program for
  livestock producers using surplus nonfat dry
  milk.
• Crop Insurance now covers (estimated) 80% of
  cropland according to USDA.
• EQIP additional $10 million released - directed
  to states “severely impacted by drought.”
  – Only southern states listed are Oklahoma $409,000
    and Texas $234,000.
   What’s New in the 2002 Farm Bill?

                 Other
• Crop Insurance now covers (estimated)
  80% of cropland according to USDA.
  – 2001 %Acres planted which are insured.
    • Corn 80.3%        -     66.9% coverage
    • Upland Cotton 94.6% -   61.7% coverage
    • Soybeans 76.9% -        75.9% coverage
   What’s New in the 2002 Farm Bill?


                    Other
• Issue of crop insurance and disaster
  assistance being brought up.
• Question of insurance along with disaster
  assistance might increase benefits beyond
  100% of losses?
     What’s New in the 2002 Farm Bill?

                            Other
•   Recent IMF Report – Industrialized countries support
    for ag. unfair to non-industrialized countries.
•   Support levels for industrial countries averaged 31% of
    farm income in 2001.
•   Swiss – 69%
•   New Zeland - 1%
•   Smallest in countries that are efficient, export-oriented.
•   Largest in countries that are inefficient and import
    substituting (like Japan, Korea, Norway and
    Switzerland)
   What’s New in the 2002 Farm Bill?

                 Other
• IMF Report – Subsidies
  – Canada and U.S. about 20%.
  – EU about 35%.
  – Trade liberalization would raise GDP overall
    most favoring Canada, Australia and New
    Zeland.
What’s New in the 2002 Farm Bill?

       Conservation Title
 CRP- Expanded to 39.2 m. acres
WRP – Expanded to 2.275 m. acres.
     GRP – (Grasslands Reserve new)
Farmland Protection – Authorized $985m. For
              length of the bill.
     EQIP – Increased to $1.3b in 2007
    CSP – (Conservation Security new)
   What’s New in the 2002 Farm Bill?
              Conservation Title
GRP – (Grasslands Reserve new)
       • 2 m acres enrollment to retain improve grasslands. Total
         authorized 03-07 $254m.
Farmland Protection
       • Authorized $985m. For length of the bill.
EQIP
       • Increased funding cost share to $1.3b in 2007
       • Split 60/40 livestock/crops.
CSP – (Conservation Security new)
       • Incentive programs for stewardship on cropland,
         pastureland, rangeland and incidental forestland.
   What’s New in the 2002 Farm Bill?

                 Miscellaneous

• 2002 Farm Bill Train the Trainer Meetings
  held in conjunction with FSA.

• Report available on the back table.

• Training materials available on the Farm
  Foundation Website
     www.farmfoundation.org/farmbill

								
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