Agricultural producers can now enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. These two USDA safety-net programs provide income support to help producers manage the ups and downs in revenues and prices.
“USDA is here to support the economic stability of American agricultural producers by helping them maintain their competitive edge in times of stress,” said Richard Fordyce, administrator of USDA’s Farm Service Agency. “We encourage producers to consider enrolling in one of these programs.”
ARC provides income support payments on historical base acres when actual crop revenue declines below a specified guaranteed level. PLC provides income support payments on historical base acres when the effective price for a covered commodity falls below reference price. The 2018 Farm Bill reauthorized and updated both programs.
ARC and PLC have options for the farm operator who is actively farming the land, as well as the owner of the land. Farm owners have a one-time opportunity to update PLC payment yields beginning with crop year 2020.
Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, grapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed, and wheat.
For more information on ARC and PLC including two online decision tools that assist producers in making enrollment and election decisions, visit the ARC and PLC webpage at www.fsa.usda.gov/programs-and-services/arcplc_program/index.
Dairy producers can now also enroll in the Dairy Margin Coverage (DMC) for calendar year 2020. The program helps producers manage economic risk brought on by mild price and feed cost disparities.
The DMC program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost falls below a certain dollar amount selected by the producer.
“Dairy producers should definitely consider coverage for 2020 as even the slightest drop in the margin can trigger payments,” said Bill Northey, under secretary for Farm Production and Conservation. “Dairy producers should consider enrolling in DMC to guard against what has been, for several years, an extremely unforgiving market.”
For more information on enrolling in DMC, visit the DMC website at www.fsa.usda.gov/programs-and-services/dairy-margin-coverage-program/index.
For additional questions and assistance on these programs, contact your local USDA service center.