Transitioning expiring CRP band to beginning, veteran or underserved farmers and ranchers

CRP contract holders are encouraged to transition their Conservation Reserve Program (CRP) acres to beginning, veteran or socially disadvantaged farmers or ranchers through the Transition Incentives Program (TIP). TIP provides annual rental payments to the landowner or operator for up to two additional years after the CRP contract expires, provided the transition is not to a family member.

Enrollment in TIP is on a continuous basis through 2023 or until the new statutory limit of $50 million under the 2018 Farm Bill is reached.

CRP contract holders no longer need to be a retired or retiring owner or operator to transition their land. TIP participants must agree to sell, have a contract to sell, or agree to lease long term (at least five years) land enrolled in an expiring CRP contract to a beginning, veteran, or socially disadvantaged farmer or rancher who is not a family member.

Beginning, veteran or social disadvantaged farmers and ranchers and CRP participants may enroll in TIP beginning two years before the expiration date of the CRP contract. For example, if a CRP contract is scheduled to expire on Sept. 30, 2022, the land may be offered for enrollment in TIP from Oct. 1, 2020, through Sept. 30, 2022. The TIP application must be submitted prior to completing the lease or sale of the affected lands.

New landowners or renters that return the land to production must use sustainable grazing or farming methods.

For more information on TIP, visit https://www.fsa.usda.gov/conservation.

Corn market ready to move in either direction

The Hibbing Tribune

On the surface, nothing much seems to be happening in the corn market. Prices haven’t shot up or down lately. You could almost call it a doldrum.

But appearances may sometimes be deceiving, according to Karl Setzer, an analyst with Agrivisor. The corn market may be in a very difficult spot at the moment — ready to jump up or drop like a rock.

“It’s a precarious market,” Setzer said.

Farmers, he adds, need to be aware of that situation so they aren’t caught off guard if the market suddenly sinks or flies.

The corn market also isn’t making much sense at the moment, Setzer said. Many of the funds are at record short positions, but the technical indicators would appear to say those funds should be long.

“Somebody’s wrong in the market,” Setzer said. “We just don’t know who.”

There are fundamentals to watch. Crop conditions would appear to be good for corn and beans across much of the United States. That should mean the market isn’t likely to build a big risk premium into the price, at least not for production.

The livestock market appears to be stabilizing after the shock of the COVID-19 epidemic threw it for a loop. The ethanol market is still struggling, thanks to low fuel prices and usage. Most analysts are projecting large grain carryouts next year.

All of this points to a steady but bearish market, and one where farmers may want to take advantage of any decent sales opportunities, especially for old-crop grain or for the percentage of new crop grain that may not be covered by insurance.

Setzer said options would appear to be a better way of getting some protection in the market than futures.