Episode 37 Emergency Commodity Assistance Program (ECAP) Sign-Up is Live

 Join Riley Smith on Morning Coffee and Ag Markets as he brings in Dr. Hunter Biram, Assistant Professor and Extension Agricultural Economist at the University of Arkansas, to discuss the launch of the Emergency Commodity Assistance Program (ECAP) sign-up. Dr. Biram provides key insights into the program, which offers financial relief to farmers impacted by higher input costs and falling commodity prices. With up to $10 billion in direct payments available, farmers can apply online or at their local USDA Farm Service Agency office by the August 15, 2025 deadline. Don’t miss this important update on how Arkansas farmers can receive nearly $300 million in aid through ECAP! 

Transcript

00;00;04;01 - 00;00;09;01
Riley Smith
Okay. Well Dr. Biram Here we.

00;00;09;01 - 00;00;11;00
Riley Smith
are again another

00;00;11;00 - 00;00;12;07
Riley Smith
episode in.

00;00;12;07 - 00;00;14;08
Dr. Hunter Biram
Another one 37

00;00;14;10 - 00;00;16;19
Dr. Hunter Biram
I cannot believe we've had 37 episodes already.

00;00;16;20 - 00;00;18;08
Riley Smith
I can't either. That's,

00;00;18;11 - 00;00;21;28
Riley Smith
It's been quite the journey so far. I know we've grown some.

00;00;21;28 - 00;00;23;02
Riley Smith
But.

00;00;23;05 - 00;00;24;12
Dr. Hunter Biram
Time flies, when you're having fun.

00;00;24;19 - 00;00;25;29
Riley Smith
It does, it does.

00;00;25;29 - 00;00;29;26
Riley Smith
It does. So today we've got Dr. Biram on here. And we're going to talk.

00;00;29;26 - 00;00;31;03
Riley Smith
About, the.

00;00;31;03 - 00;00;35;15
Riley Smith
Emergency committee assistance program ECAP

00;00;35;18 - 00;00;40;12
Riley Smith
So I'm going to go into our intro real quick, and,

00;00;40;14 - 00;00;45;18
Riley Smith
Then I'm going to let Dr. Biram kind of take over. I'm feeling a little under the weather.

00;00;45;21 - 00;00;46;12
Riley Smith
I got.

00;00;46;14 - 00;00;48;25
Riley Smith
Diagnosed with type A flu.

00;00;48;25 - 00;00;51;01
Riley Smith
At the beginning of the week, so that's been lovely.

00;00;51;03 - 00;00;59;10
Riley Smith
Along with allergies kinda of figure that a lot of other people are probably enduring that right now. It's that time of year. Lots of lots and lots of pollen out.

00;00;59;10 - 00;01;02;22
Riley Smith
So. But anyway, here we go. Well good morning.

00;01;02;22 - 00;01;10;22
Riley Smith
Good morning. Welcome to another episode of Morning Coffee and Ag Markets with your host Riley Smith. And today, as I mentioned, we got Dr. Hunter Biram.

00;01;10;22 - 00;01;11;10
Riley Smith
And I'm going to be.

00;01;11;10 - 00;01;15;04
Riley Smith
Letting him take over kind of talk about this ECAP program.

00;01;15;06 - 00;01;16;15
Riley Smith
And,

00;01;16;18 - 00;01;29;29
Riley Smith
What the Emergency Committee Assistance Program does. However, the first question I'm going to ask, we've talked of, we've talked about this a lot already with two previous episodes. Can you give us, like, a real brief recap of.

00;01;29;29 - 00;01;31;12
Riley Smith
What ECAP is?

00;01;31;15 - 00;01;52;20
Dr. Hunter Biram
Yeah. I'll give you a recap of ECAP And, it was so it was in that, year end funding bill in December, the American Relief Act. And I'm not even going to great detail, but I'll just, note that, the program was, passed to help farmers mitigate the effects of higher input costs and in commodity prices in 2024.

00;01;52;22 - 00;02;28;22
Dr. Hunter Biram
And there is, $10 million set aside, that's been authorized to, fund this program. And so, the, payments are going to be based on the sum of all planted acres for, for an FSA farm number, plus 50% of failed acres. So think of prevented, planted, acres. And so, a farmer will receive, the full payment if, the person, the farmer owns or cash rents and, if the farmers under a crop share, they'll receive a payment that is based on the share of their crop agreements.

00;02;28;22 - 00;02;38;19
Dr. Hunter Biram
Of the 75/25 they're going to get 75%, of the full, payment. So that's a real high level overview.

00;02;38;22 - 00;02;42;16
Riley Smith
What are those final payment rates that you're talking about?

00;02;42;18 - 00;03;12;14
Dr. Hunter Biram
Yeah. So the final payment rates, just list those off, is, $42.91 per acre for corn, for cotton, $84.74 per acre for peanuts, $75.51 per acre for rice. And that's going to be, long and medium grain. Rice is going to be $76, $0.94 per acre. Sorghum is going to be $42.52 per acre, soybeans $29.76 per acre, wheat $30.69 per acre.

00;03;12;16 - 00;03;31;01
Dr. Hunter Biram
Now, I do want to note that, the report that we talked about, the rule of farm finance, Policy Analysis Center, you know, we come out with a report showing just the degree to which these, these, this assistance will help recoup those economic losses that we're facing 2024. And we were actually pretty close.

00;03;31;03 - 00;03;57;03
Dr. Hunter Biram
You know, corn was, was $42.51 under raff, Cotton was $87.26 under raff, peanuts was $76.30 under raff. Rice was $69.52 under raff, Sorghum $42.58 under raff, soybeans, $29.50 under raff and wheat was $30.69, which is around the money with, where the current payment rate is. So we were pretty close. I think rice came in a little bit above that.

00;03;57;06 - 00;04;09;26
Dr. Hunter Biram
Above the the actual rice payment rate came in above raff. Peanuts came just about a dollar below. And cotton came in about, you know, two and a half dollars below. But for the most part, we were pretty spot on. So I was pretty proud to see that.

00;04;09;28 - 00;04;14;27
Riley Smith
So what does, what does getting a payment look like?

00;04;14;27 - 00;04;19;11
Riley Smith
And will a farmer get the full payment?

00;04;19;13 - 00;04;42;23
Dr. Hunter Biram
Yeah. So the short answer is a farmer will not get the full payment initially. The ECAP payments will be, prorated by 85% to ensure that payments do not exceed available funding. But FSA may issue further payments if additional funding remains after the initial payments are issued. So it's going to be 85% payment, rate. Hope that there's 15 more percent that'll be coming on the way.

00;04;42;23 - 00;05;00;06
Dr. Hunter Biram
But for sure, the 85% of that payment rate is what farmers will get. Just to make sure that, USDA is staying within, the budget. And I'm just going to I'm just going to rehash what I talked about with this own vs cash rent. So if a farmer owns their land or a farmer's cash renting, they're going to get that full payment rate.

00;05;00;06 - 00;05;19;08
Dr. Hunter Biram
You know, times the 85% that I just mentioned. But if they have that crop share agreement, so it's 75, 25, they're going get 75% of that, 85% of the, of the payment rate. And so if it's a that's any kind of if it's an 80/20, then it's 80% of that, you know, 85, 15 of those even exists, 85% of that.

00;05;19;08 - 00;05;26;09
Dr. Hunter Biram
And so on. So it is a function of the, of the, land, rental agreement.

00;05;26;12 - 00;05;26;23
Riley Smith
Okay.

00;05;26;23 - 00;05;28;18
Riley Smith
So going to kind.

00;05;28;18 - 00;05;32;13
Riley Smith
Of change gears. So what about forms and sign up for ECAP?

00;05;32;15 - 00;05;56;05
Dr. Hunter Biram
Yeah. So, USDA has done a pretty good job with streamline streamlining this, so there will actually be prefilled ECAP applications mailed to producers. And those have actually been sent out. So on March the 10th, that should have been sent out already. Contact your local FSA office if you haven't gotten that, for our producers out there, but there'll be a pre-filled application, you can file with your local FSA office, or you can file online.

00;05;56;05 - 00;06;23;11
Dr. Hunter Biram
Even, I've heard of a farmer who did online. It took him, like, no time at all. Think it was, like, less than an hour. And he was done. So it if you do it online pretty fast. And like I said, you did a pretty good job of streamlining this. The acreage will come straight from the FSA 578, which is that acreage, the acreage reporting, for FSA, producers who have not worked with FSA and filed with FSA for farm programs before.

00;06;23;13 - 00;06;44;16
Dr. Hunter Biram
We'll sorry. We'll have until August the 15th to complete the FSA, 578 if it hasn't already been done, even if this had already been done, farmer said that pre-filled application. Make sure that you submit it, contact your local FSA office and make sure that that presale application verify the information on that application and make sure, that it's right.

00;06;44;16 - 00;07;01;08
Dr. Hunter Biram
And make sure that you work with your FSA office team, to get that submitted and get it confirmed. And sound the dotted line and everything. So, I'm just making the point that I do want to emphasize if you have a completed FSA 578 or these other forms, and I'm going to mention you have until August 15th to do that.

00;07;01;10 - 00;07;25;12
Dr. Hunter Biram
And even if you have these on record with FSA, you have until August 15th to pretty much press submit on that pre-filled application. So make sure that you get that done, ASAP. Now that's, planted acreage. The for prevented planting, acreage that's going to come from that CCC 576 and go ahead and file that even if other deadlines for other FSA programs have passed.

00;07;25;12 - 00;07;42;19
Dr. Hunter Biram
So be sure that that FSA 578 and the CCC 576 are filed so the for the first time, filers of FSA 578, now these other forms should be on record if you filed an FSA 578 and if you have signed up for farm programs before, but if not, I'm going to list those off here as well.

00;07;42;21 - 00;08;05;18
Dr. Hunter Biram
The AD 2047, which is the customer data worksheet, the CCC 901, which is a member information form if that's even applicable. Because not all of these forms will necessarily be applicable. The CCC 902, which is a farm operating plan, for, for the individual or for a legal entity, the CCC 943, which is just verifying that 75% of your gross income comes from farming.

00;08;05;20 - 00;08;28;00
Dr. Hunter Biram
And then there's the 801026 for highly erodible land conservation and wetland conservation, form. And then the SF 33881, which is for direct deposit, to make sure that you get that, money to direct deposited in your bank account. So there's quite a few forms. But again, like if you've already enrolled with FSA programs before, this is not going to be a huge deal.

00;08;28;03 - 00;08;43;25
Dr. Hunter Biram
It's just going there to verify the information, verifying the acreage, and hitting submit. That's what's going to about to now this is this is a first time maybe it's a new beginning farmer or maybe it's a Farmer just never enrolled in farm programs before. Be sure that these other forms are completed. So I'm glad we're providing this coverage now.

00;08;44;00 - 00;08;59;12
Dr. Hunter Biram
And I know that this morning, actually, our friends at Texas A&M, Joe Outlaw and Bart Fisher put out an Southern AG today first thing this morning, which I appreciate. And, so I'm glad that we're getting the word out, to our farmers to go ahead and start doing this now and other plantings going on.

00;08;59;14 - 00;09;20;02
Dr. Hunter Biram
I know a lot of big decisions are being made, have been made, and, decision fatigue is probably already setting in. But this is something it's very important. I mean, this money is straight from USDA. There's nothing else needs to be done except verifying information or filling out some forms. But that is essentially free money. To help you, get through this crop year.

00;09;20;05 - 00;09;21;24
Riley Smith
Right

00;09;21;27 - 00;09;24;23
Riley Smith
Well, Dr. Biram, I appreciate you taking the time. I know that.

00;09;24;23 - 00;09;25;16
Riley Smith
You've got another.

00;09;25;16 - 00;09;32;19
Riley Smith
Meeting to get to here in just here real shortly, but I want to thank you again for taking the time to get on here to talk about ECAP a little.

00;09;32;19 - 00;09;34;08
Riley Smith
Bit. And, and.

00;09;34;11 - 00;09;38;03
Riley Smith
Kind of what those final payment rates look like and what new filers can.

00;09;38;03 - 00;09;39;24
Riley Smith
Do if they want to go, you know.

00;09;39;24 - 00;09;45;22
Riley Smith
Get into a FSA loan, not FSA loan, but a FSA program.

00;09;45;24 - 00;09;46;15
Riley Smith


00;09;46;18 - 00;09;47;28
Dr. Hunter Biram
That Flu Brain.

00;09;48;01 - 00;09;50;23
Riley Smith
Yeah, I'm telling you, it's, I'm struggling.

00;09;50;23 - 00;09;53;26
Riley Smith
A little bit, but but anyway, thank you again.

00;09;53;29 - 00;09;56;25
Dr. Hunter Biram
Riley. If I can, I'm going to put on one more note.

00;09;56;28 - 00;09;58;12
Riley Smith
Okay. Go ahead, go ahead.

00;09;58;12 - 00;10;32;09
Dr. Hunter Biram
I got one last note, and then. And then we can go. about our rat killing. I do note that, that this, that this program is subject to payment limits very similar to that of ARC or PLC. And so payment limits are $125,000 per person or legal entity, if less than 25% of the average gross farm income of the person or the entity for the 2020, 2021 and 2022 tax years is derived from farming activities, essentially, but the payment will be increased to $250,000 if more than 25% of the average gross farm income

00;10;32;09 - 00;10;52;20
Dr. Hunter Biram
is derived from farmer rancher. So that's one thing that I totally forgot to, to talk about. And, I'll put it in the newsletter to some, some minor, some just some, verbiage differences, between like, gross income and average adjusted gross income. And, I'm not a tax professional, but I just want to make a few distinctions on those two.

00;10;52;20 - 00;11;06;07
Dr. Hunter Biram
I'll put that in the newsletter. But I do want to note that these are subject to payment limits. And so, be aware of that if your payment isn't as big as you thought it would be based on your acreage, it's because of payment limits. And again, going back to if it's a crop share agreement, you're not going to get that full payment.

00;11;06;07 - 00;11;25;09
Dr. Hunter Biram
If you're on a crop share, your your landlord will get their share and you will get your share. But, you know, if you want to work it out in account in a contractual way, maybe use a farmer could get part of that money or all of that money that that that your landlord gets. That's very specific to the landlord tenant relationship, very specific to that.

00;11;25;09 - 00;11;40;23
Dr. Hunter Biram
So I'm not saying that, you're going to be guaranteed to get that money. But, you know, talk with your landlord, especially if you have that relationship with them, talk with them about and say, hey, like, listen, like, I really need this to get through the year. You know, can we had that conversation now? I know sometimes it's not the best plan of action.

00;11;40;25 - 00;11;49;01
Dr. Hunter Biram
But, you know, especially if you have that relationship, I think it's worth it to go and have that conversation. So with that, I will step away, and I will let you wrap this up and take us home.

00;11;49;03 - 00;11;51;03
Riley Smith
Well, that's your recap of the.

00;11;51;09 - 00;11;52;01
Riley Smith
ECAP.

00;11;52;03 - 00;11;53;29
Dr. Hunter Biram
That's it the ECAP recap.

00;11;53;29 - 00;11;55;15
Riley Smith
There you go.

00;11;55;18 - 00;12;19;25
Riley Smith
Well, y'all say tune for my market report thanks, All right, guys, back on the market report May 25 Corn current prices at $4.51 per bushel a month agos price at $4.94 per bushel. That's down $0.43. Year agos price was at $4.27 per bushel. That's up $0.24. May 25 Rice current price is at $13.18 cwt, month agos price was at $13.58 per cwt.

00;12;19;25 - 00;12;45;20
Riley Smith
That's down $0.40 and year agos price is at $16.59 per cwt. That's down $3.41. May 25 soybeans current price is at $10.01 per bushel a month agos price is at $10.41 per bushel. That's down $0.40 and year agos price was at $11.93 per bushel. That's down to $1.92. July 25 wheat current price is at $5.51 per bushel.

00;12;45;20 - 00;13;07;27
Riley Smith
month agos price is at $5.94 per bushel thats down $0.43 and year agos price is at $5.63 per bushel. That's down $0.12. May 25 Cotton current price is at $0.66 per pound month agos price is at $0.67 per pound. That's down $0.01 year agos price is at $0.91 a pound. That's down $0.25 and your weekly U.S average for peanuts.

00;13;07;27 - 00;13;33;21
Riley Smith
Current price is at $514 per ton, month agos price at $490 per ton. That's up $24 in a year agos prices at $544 per ton. That's down $30. That's your weekly commodity futures this week. Your fertilizer prices this week. Urea is at $539.75 per ton, ammonium nitrate at $494.67 per ton, ammonium sulfate at $539.80 per ton.

00;13;33;23 - 00;14;04;07
Riley Smith
DAP is $759 a ton, triple superphosphate $665 per ton. Potash is at $452 per ton and AG lime $50 per ton, and pellet lime is $237.65 per ton. This week, your diesel prices this week off road diesels to $2.58 per gallon. Highway diesel is $3.27 per gallon. And your Mississippi River level and Memphis, Tennessee. This week, current levels at 13.3ft and a year ago was at 6.23ft.

00;14;04;13 - 00;14;14;14
Riley Smith
Want to thank you all again for joining in on another episode of Morning Coffee and Ag Markets. We hope you enjoyed it and enjoyed your morning cup as you tuned into another episode. So until next week, we'll catch y’all

00;14;14;14 - 00;14;30;18
Riley Smith
The flip flop. Bye bye now.