Tuesday, December 1, 2015

FEFO - An Early Jump on Computing ARC-CO Payments

FEFO - An Early Jump on Computing ARC-CO Payments
Gary Schnitkey, Agricultural Economist - University of Illinois

The Farm Service Agency (FSA) computes county yields used in calculating Agricultural Risk Coverage—County Option (ARC-CO) payments. FSA yields differ from county yields released by the National Agricultural Statistical Service (NASS). While different, NASS yields will be useful in estimating 2015 ARC-CO payments when they are released in late February 2016. FSA likely will not release FSA yields until autumn of 2016. Many farmers, lenders, and landowners will desire payment estimates before the autumn. In many cases, NASS yields can be used to arrive at realistic estimates of ARC-CO payments. To aid in ARC-CO payment estimation, the average differences between FSA and NASS yields are reported in this article for corn in Illinois counties.