1. 2014 Farm Bill: Theory and Practice Discussion Chris Hurt Purdue University hurtc@purdue.edu

2. Farm Bill Education: Our Program Coordinated programming with State/Local FSA offices Trained about 25 Educators AgEcon RULE. Have the FSA present FIRST Clients needed: – A way to think through the three alternative – Analysis and evaluation of choices – A way to follow-up on their own farms Among Extension’s Shining Moments

3. Price Loss Coverage (PLC) Agriculture Risk Coverage-County Option (ARC-CO) Agriculture Risk Coverage-Individual Option (ARC-IC) Corn Ind2.16%97.80%0.04% Ill1.95%97.89%0.16% Iowa2.71%97.03%0.25% Ohio1.95%97.87%0.18% Soybeans Ind1.89%98.07%0.04% Ill2.26%97.59%0.16% Iowa1.30%98.40%0.29% Ohio2.50%97.33%0.17% Wheat Ind7.79%92.17%0.03% Ill35.21%64.75%0.04% Iowa6.43%93.25%0.31% Ohio17.54%82.22%0.23%

4. Goal: Replace direct payments with a needs based program with payments based on: 1.Low Prices PLC 2.Low Revenues ARC How is it working?

6. Our Continued Role: Research and Extension Continue to reminded farmers of how the program works Give access to county yields and MYA Prices Keep estimates of county payment levels in front of bankers, farmers, land owners (for CASH FLOWS) Help clients understand the risk management (safety net) aspects of the government program, crop insurance marketing and production and financial management. Research: Is the program: – Working to provide the safety net – Fair (equitable) Those who have the losses tend to be protected