Ever since people began trying to understand the basics of the new Farm Bill programs, some have been confused about the ties between the programs and Federal Crop Insurance.
Carl Schweikhardt, program chief in the Indiana FSA office for 2014 Farm Bill questions, says there isn't a direct connection. He tries to make that clear while answering that and other questions he's fielded from the joint educational meetings on the Farm Bill put on by FSA and Purdue University. There ae still some of those meetings remaining. Contact your local FSA office or local Purdue Extension office to determine which meeting might be closest to you. These are afternoon meetings.
Question: Must a producer carry federal crop insurance in order to be eligible for the ARC/PLC program?
Answer: No. Participation in ARC or PLC programs does not require a participant to carry crop insurance.
Question: Can a person with an FSA power of attorney authority make the base reallocation, yield update and election decisions for an owner?
Answer: Yes, if the POA has been completed for "All current and future programs" and "All actions."
Question: What happens if I reconstitute a farm after the election is made?
Answer: Once an election for a farm is made, the reconstituted farm(s) retain that election through the life of the farm bill. A new election cannot be made.
Question: Will an annual contract to participate in the ARC/PLC program be required in order to receive payments?
Answer: Yes. All owners, operators and tenants with an interest in the base acres on the farm must sign the annual contract 2014 through 2018. Cash leases may be provided in lieu of obtaining a signature from an owner. Operators may use FSA POA's for owners.