2018 Farm Bill
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Hardwood11
It is going to be a good fall!
I was told the crop years will change. They said a new sign up is expected in June or July.
The crop years definitely moved ahead https://www.fsa.usda.gov/programs-a...serve-program/crp-continuous-enrollment/index
So if I'm reading this right, rates will be 90% of existing crp rates. If that is accurate that is WAY better than the rumored 85% of average cash rents for the county. I hope I'm reading that right. Be a big win for conservation and wildlife.
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Hardwood11
It is going to be a good fall!
There are some good continuous programs on the list. Check out the Duck Nesting program, I was able to get 70 acres in that program before, and it use to allow around 10-20% in trees to be planted.
90% rate is of the CURRENT rental rate from last year. 90% is for continuous sign-up practices only. 85% rate will be for general sign-up programs which is expected late in the year. What the continuous practices will be is still to be determined I think BUT VERY UNLIKELY that continuous will include whole fields. Continuous in the past has meant waterways, buffer strips, etc. I am anxious to see if pollinators still fall into continuous but if they do the incentives and cost share will likely mean $ out of pocket for pollinators plantings.
Ok for clarity... give us all some real world figures for example. Appreciate the info!
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Ok...meant figurative as example. Old rate is xxx. Current rate is xxx. Therefore new signup rate will be xxx.
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A good starting point would be to look up the ISU rental rate survey for your county and compare your ground to the low, medium and high cash rents. THE BEST option would be to stop in your local FSA office in the county that your land is located/carried.
The rates will be down some from what was seen in the previous signups in the past 2 years it. If you compare the rates to what people got on enrollment 2015,2016and 2017 these could be as low as half of those rates on the best high value soil. I am most familiar with south central Iowa county’s. It also looks like less bonuses through the removal of the SIP,and PIP incentive payments. As an example I pulled a farm that I enrolled in 2016 and planted in spring of 2017.The pay rate is 256.00 an acre, That same farm using the same 3 predominant soils would go in at 148.00 in this signup. This is Monroe county. Please post any new bid as they are given i am interested in what others find.
How did $256 compare to market cash rents when you bid your farm in and how would $165 (.9*$165=148) compare now?
Using ISU county average rental rates won’t be close as crp is based on the 3 predominant soils in the fields being offered. Some of the lower quality soil rates went up and the real high ones went wAy down. One thing to be careful of is in continuous signup like buffers it often takes the best paying acres but on a small amount of land leaving the remaining field a much lower rate. The only way to get a realistic estimate is to pick a field on your farm and have FSA run and give you the rental rate. It also sounds like there will be a general signup in Dec.
In my above post # 133 after rechecking, that is the rate before the reduction to the 85% in a general it is 90%in a continuous. So bottom line the rate that was 256 went to 148 but would enroll at 125.80 for a General sign up and 133.20 in a continuous. This is Monroe county I have looked at prices in the 4 surrounding county’s and they are all very similar. It will be interesting to see how much interest is there at these prices.
How did the USDA arrive at 148 from 256? (148/256 = 57%). Curious. I can work into the 125.80 and 133.20 numbers as 85% and 90% of 148 respectively
Bottom line, if rates are going to be half of what they use to be in the 2014 farm bill & there is no cost share, max acres in CRP will never be in jeopardy and there will be very little interest. I love what CRP offers, but will not pursue much of it at all. A lot of marginal ground would be well under $100 in that case. That will hurt wildlife and conservation.
The question to ask yourself is how does $148 compare to current market rates. $256 was likely way too high and now we all are paying for the repercussion of rates that were too high to begin with. CRP was not designed to set the cash rent market. I do agree the CURRENT rates are likely on the other side of the pendulum. The rates I am aware of in MO did not change other than the 85/90 and are in line with current market rates.
Yup I get it. Old CRP rates were way out of line, especially towards the tail end of the bill. Looks like they are out of line again.... on the other side. No one is going to enroll much CRP at rates under $100, which is where a LOT of marginal ground is going to land.
Example on a lot of southern iowa ground: 2014 farm bill CRP rates.... 175- 200. New rates <$100. Can cash rent for 20-60% more depending on area.