Farm Security and Rural Investment Act of 2002

Slide 2

3 Types of Payments

Program Crops

Decisions to Make

Base Acres for Program Crops

Example 1: keep old bases
600 crop acres, 400 acre corn base

Example 2: keep old bases

Base Acres for Program Crops

Example: Update Bases

 Yields for Program Crops

 Yields for Program Crops

Two Methods for New Yields

Example: Update Yields

Example: Program Yields

Loan Deficiency Payments

National Average Loan Rates

Direct Payments

Direct Payments Comparison

Counter Cyclical Pmt. Rates

Counter Cyclical Payments

CC Payments Comparison

Update Acres and Yields or Not?

Conclusions

Timing of Payments 2002 Crop

Payment Timeline

Payment Limitations

Approximate Maximum Acres Single Entity

FAIR Act: Minimum Revenue

FSRIA: Minimum Revenue

Corn: Revenue vs. Price

Soybeans: Revenue vs. Price

Min. Revenue per acre, 50% corn base,
150 bu. corn, 50 bu. soybeans

Revenue per acre,67% &100% corn base,
150 bu. corn, 50 bu. soybeans

Assumptions

FSRIA 2002 vs. FAIR 2001

Questions??

FSA Letters

Production Information

FSA Base “Options”