Generic Base Acre Reallocation: Incorporating Risk Management Strategies into Farm Decision Tools

The decision whether to convert generic base acres to seed cotton base or reallocate those generic acres to proportional shares of planted, commodity crops (including seed cotton) can be complex. This decision applies not only to CY 2018 but subsequent crop years as well.  Producers are encouraged to evaluate their future farming intentions and answer the following: (1) Do I want to reallocate my farm’s generic base so as to maximize farm program payments? or (2) Do I want to reallocate my generic base to reflect my farm’s future planting intentions? Irrespective of which farming strategy is adopted, future commodity prices and parish yield trends are fundamental components that need to be considered when making their generic base conversion decision. The use of farm management decision support tools allow producers to estimate future program payment rates under each base acre reallocation option.