What's Up at the FSA Office?

by Jeremy Leitz, Allamakee County Executive Director (563) 568-2148

Upcoming Deadlines and Important Dates
May 1: Last day to report production for the Market Facilitation Program
May 14: Deadline to complete mid-contract management (MCM) activities on CRP
May 15 - August 1: Primary Nesting Season.  No MCM activities on CRP acres.

Market Facilitation Program
May 1 is the last day to report production for the Market Facilitation Program. If you signed an application timely (deadline was February 14) but need to report production for beans, corn, dairy, or hogs, please stop in our office by this date to ensure you get paid. 

CRP Reminders
The primary nesting season runs from May 15 - August 1. Contact the FSA office if you need to perform spot maintenance activities on your CRP acres during this time. Cosmetic mowing of your CRP acres is prohibited, but you can spot treat areas that are threatened by undesirable vegetation throughout the year. A written request must be made before the County Committee grants approval to conduct maintenance during the nesting season.

As a reminder, volunteer trees and woody vegetation must be controlled and removed from CRP acres. Failure to control undesirable vegetation on CRP can result in financial penalties.

USDA Announces January Income over Feed Cost Margin Triggers First 2019 Dairy Safety Net Payment
FSA announced that the January 2019 income over feed cost margin was $7.99 per hundredweight, triggering the first payment for eligible dairy producers who purchase the appropriate level of coverage under the new but yet-to-be established Dairy Margin Coverage (DMC) program.

DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk management program for dairy producers that was authorized by the 2018 Farm Bill. DMC offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

Agriculture Secretary Sonny Perdue announced that sign up for DMC will open by mid-June of this year.  At the time of sign up, producers who elect a DMC coverage level between $8.00 and $9.50 would be eligible for a payment for January 2019.

For example, a dairy operation with an established production history of 3 million pounds (30,000 cwt.) that elects the $9.50 coverage level for 50 percent of its production could potentially be eligible to receive $1,887.50 for January.

Sample calculation:
$9.50 - $7.99 margin = $1.51 difference
$1.51 times 50 percent of production times 2,500 cwt. (30,000 cwt./12) = $1,887.50
The calculated annual premium for coverage at $9.50 on 50 percent of a 3-million-pound production history for this example would be $2,250.

Sample calculation:
3,000,000 times 50 percent = 1,500,000/100 = 15,000 cwt. times 0.150 premium fee = $2,250

Farm Reconstitutions
When changes in farm ownership or operation take place, a farm reconstitution is necessary. The reconstitution - or recon - is the process of combining or dividing farms or tracts of land based on the farming operation.  To be effective for the current Fiscal Year (FY), farm combinations and farm divisions must be requested by August 1 of the FY for farms subject to the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program.  A reconstitution is considered to be requested when all of the required signatures are on FSA-155 other applicable documentation, such as proof of ownership, is submitted. Total Conservation Reserve Program (CRP) and non-ARC/PLC farms may be reconstituted at any time.

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