Dry Beans Reduce ARC Benefits
If you are considering edible beans in 2017, take a moment to consider the impact on your ARC-CO payments. Why? Acre-for-acre reduction in benefits. In other words, any acres exceeding non-program commodity acres on each specific FSA farm number will eliminate any ARC payments on those acres. Factor expected ARC payments into corn budgets and reduced ARC payments into dry bean budgets. Also, consider planting beans on Farm Numbers with base acres assigned to non-program crops. In many counties, 2017 ARC payments are expected to be negligible. However, it is worth your consideration as we move forward.
To clarify with an example:
Farm 1234 has 520 base acres and planted 260 acres to dry beans from 2009-2012. He has 455 corn acres and 65 acres of dry beans.
Farm 5678 has 520 base acres and all acres were planted to corn from 2009-2012. 520 corn acres.
In 2015, all acres are planted to corn on these two farms. The farmer is paid based upon the 455 corn acres in Farm 1234 and Farm 5678's 520 corn acres. No payment is made on dry bean acres.
In 2016, all of Farm 1234 is planted to corn. 390 acres are planted to corn on Farm 5678 while the remaining 130 acres is planted to dry beans. Farm 1234 receives a payment on its 455 corn acres. Farm 5678's payment is reduced by the 130 acres planted to dry beans, leaving 390 payment acres of corn.
Page 19 of Farm Bill
(e) EFFECT OF PLANTING FRUITS AND VEGETABLES.—(1) REDUCTION REQUIRED.—In the manner provided in this subsection, payment acres on a farm shall be reduced in any crop year in which fruits, vegetables (other than mung beans and pulse crops), or wild rice have been planted on base acres on a farm.
