Nearly $4 Billion of ARC/PLC Payments Being Sent This Week
The USDA just announced that almost $4 billion of ARC/PLC payments will be mailed to producers this week. Nearly half of the producers that signed up for ARC/PLC will receive payments for the 2014 crop year. The majority of the ARC payments will be for corn growers in the upper Midwest (northern Iowa, Nebraska, South Dakota and Minnesota).
The key data needed to determine the payments are final FSA crop yields for 2014. As far as we can tell, this data has not yet been released, so it is difficult to determine benchmark revenue for the 2015 crop. Once we have those yields we will update estimated benchmark revenue numbers for most crops and states, but until then, the payments going out this week will be an added boost to farm incomes.
Paul Neiffer, CPA
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.
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