2018 ARC Report is Released
As expected the major crops such as corn, soybeans and wheat had very low average county payments. However, many parts of the country saw larger payments than other parts.
Here is a sample of the average and maximum payments for certain crops:
- Barley – $11.34 and $65.22
- Canola – $11.89 and $50.72
- Corn – $6.57 and $88.61
- Sorghum – $15.98 and $54.92
- Soybeans – $8.46 and $59.71
- Wheat – $8.41 and $53.61
Remember in the early years, many high yielding corn counties got close to $135 per acre. This year, these counties ended up with little or no payment. Most of the corn ARC went to areas outside the corn belt. For example, Illinois and Indiana only had one county each with a payment.
Areas that had issues with yields such as Missouri, Kansas, the Northeast, etc. saw payments in the $40-$80 range.
Soybeans never had a PLC payment during the 2014 Farm Bill and several counties did received a 2018 soybean ARC payment. Again, most of these counties were outside the main part of the corn belt. But many counties in Illinois and Indiana and Iowa did receive payments and some these were in excess of $45 per acre.
These payments along with the MFP payment may mean the difference between losing money this year or making a small profit.
We will be working on determining the maximum yield for some of the key production states to see where a 2019 ARC payment may kick in over the next week or two. Once we have worked up that data, we will release the results.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
I’m Dennis H an I’m a wheat an barley farmer north of Almira wa an my yield average is 62 bu an I’m wondering about pic or arc for the farm program in front of us, whitch will be the better?