Art Barnaby, Ag Economist from Kansas State University, has learned that program payments will be cut due to sequestration. All of the payments will suffer a sequestered cut of 7.3% for 2014/15 and 2015/16 payments. The sequestered cut for 2016/17 is 6.8%.
The sequestered cut does not apply to CRP contracts or crop insurance. In addition, crop insurance covers all planted acres including acres with no base. This reduction in FSA payments may be a consideration for the level of crop insurance to purchase on winter wheat that closes on September 30.
More details about this can be found in a letter written by Art Barnaby in response to an ag lender on the Kansas State University Department of Agricultural Economics website.
Source: Art Barnaby, Kansas State University Dept. of Ag Econ/AgManager.info
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