Farmers face many changes in new farm bill
Although sign-up is months away, agricultural landowners and producers need to begin planning for decisions they will have to make because of the new federal farm bill, an agricultural economist suggests. The Agricultural Act of 2014, signed into law in February, authorizes U.S. nutrition and agriculture programs through 2018 and updates how the government calculates support payments. A change in the new law is the end of direct payment subsidies that farmers received regardless of yield, price or acreage. Instead, farmers will have to choose between the agriculture risk coverage (ARC) and price loss coverage (PLC) income support programs. ARC is based on revenue while PLC is based on price. That makes the choice between the two hinge largely on which crops a farmer grows.