Seed Cotton PLC Yield Update

Provisions of the new seed cotton program allow farms the opportunity to update their seed cotton payment yield. The current farm owner has decision-making authority during the update process with the update decision being applicable to the 2018 crop year. The payment yield update can be made regardless of the subsequent program selection for seed cotton (e.g. PLC or ARC). The yield will only be used under the PLC program to calculate any potential PLC payments for seed cotton base acres on the farm.

Two yield update options are presented, the first being to retain the farm’s countercyclical (CC) yield as of September 30, 2013 multiplied by a factor of 2.4. The second option allows for the yield to be updated to 90% of the simple average of upland cotton yield per planted acre on the farm for each of the 2008 through 2012 crop years multiplied by 2.4. Years in which cotton was not planted are not considered for the update calculation. A substitute yield is authorized if the farm’s yield per planted acre in any year falls below 75% of the 2008 through 2012 simple parish yield per planted acre.

Under current farm bill provisions, the PLC program does not allow for the establishment of yield by practice (irrigated and non-irrigated). The seed cotton PLC program yield is based on the farm’s total production divided by the total irrigated and non-irrigated planted acres.

6/6/2018 1:47:10 PM
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