Tag Archive: "plc"
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ARC-IC Allows for Maximizing Flexibility (Perhaps)
Under the new farm bill, Agricultural Risk Coverage (ARC) has two elective components. You can either elect county coverage on a covered crop by crop basis (ARC-CO) or elect to have ARC apply to all crops grown on your farm (ARC-IC). If you elect county coverage, you will be paid on each covered crop’s base […]
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PLC/ARC Updates
One of the questions we are getting is “When would individual ARC make more sense than county ARC?”. As most of our readers know, ARC and PLC makes payments based upon base acres. In the case of county ARC, the payment is based upon 85% of base acres. In the case of individual farm ARC, […]
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USDA to Award $6 Million for Farm Bill Help
The USDA announced yesterday that they will be awarding $ 6 million to help farmers analyze their farm bill options primarily related to ARC and PLC. There will also be tools to analyze the options for dairy producers under the new Dairy Margin Protection Program that should start September of this year and the Noninsured Crop Disaster […]
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What if USDA Average Prices Occur?
The USDA has provided their long-term price outlook for the major crops over the next few years. Since ARC and PLC are both based upon what the average marketing price by crop year will be, I decided to run another analysis assuming that these prices occur. PLC has no yield variability, while ARC can be […]
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ARC Versus PLC – 2014-2018
We have gotten several questions regarding which program is better – ARC or PLC. There is no one right answer to this question since there are so many unknown variables. However, I decided to run out the numbers for corn, soybeans and wheat assuming certain crop marketing prices for each year. For corn, I elected […]
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ARC & PLC Are Not Crop Insurance
We had a reader ask the following question: “Paul, I have been reading your blogs about federal crop ins. Is PLC and ARC the whole program or do we still have the traditional options that we have had the last few years? If the traditional plan is still in place will we have to pick […]
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ARC Could Lock in More Revenue Than Crop Insurance
We have written several posts on Agricultural Risk Coverage over the last couple of weeks, however, the Olympic average calculations called for in ARC may yield higher income levels than crop insurance for the 2014 and 2015 crop years. ARC is calculated by taking the average revenue for either county or individual coverage. This Olympic […]
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Which is Better – ARC or PLC + SCO
Crop farmers will have two program options to consider under the new Farm Bill. Option # 1 is Agricultural Risk Coverage (ARC) which covers the risk of the farmer not receiving targeted revenue between the 76% and 86% band. If “actual” revenues calculated by the USDA fall within this band, then the farmer will collect […]
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Price Loss Coverage – What is it?
Yesterday, we posted on Agricultural Risk Coverage (ARC). Today we will go over the rules on Price Loss Coverage (PLC). ARC is based upon both a yield and price component, whereas, PCL is based strictly on price. The USDA will determine the average crop price during each marketing year and compare that to the “base” price […]