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.
