The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs were authorized by the 2014 Farm Bill.
Agriculture Loss Coverage-County (ARC-CO)
The ARC-CO program provides revenue loss coverage at the county level. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.
Price Loss Coverage (PLC)
PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity.
ARC/PLC Helps Producers Maintain Their Historical Benchmark Revenue—
ARC vs. PLC Election -- Nationwide, 96 percent of soybean farms, 91 percent of corn farms, and 66 percent of wheat farms elected ARC-County. Seventy-six percent of all base elected ARC-County. Over 90 percent of long grain rice, medium grain rice, and peanut farms elected PLC. Few farms, regardless of the commodity mix, elected ARC-Individual. Election results can vary significantly across states.
Base Reallocation -- The base reallocation results indicate that corn and soybean base increased the most relative to 2013 enrolled base—by 12.8 million and 4.7 million acres, respectively. Wheat base declined by nearly 9.9 million acres.
Yield Updating -- Updated yields are relevant only for the PLC program. For those farms electing PLC and updating yields, the yields for corn, soybeans, and wheat all increased by about 30 percent relative to the counter-cyclical payment program (CCP) yield. For some pulse and minor oilseed crops, the increase was significantly higher. Many CCP yields date back to the early 1980s.