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ARC/PLC Definitions

Acreage report
An annual report for each insured crop in the county in which the producer has an ownership share. It indicates the crop planted, acreage prevented from planting, the producer’s share in those crops, acres planted, the dates planted, and other information. Acreage reporting dates vary from crop to crop based on the production cycle. For example, the crop insurance acreage reporting date for many counties is November 15 for winter wheat.
Base acres
A farm’s crop-specific acreage of wheat, feed grains, rice, oilseeds, pulse crops, or peanuts eligible used for FSA program purposes. Base acres do not necessarily align with current plantings. Upland cotton base acres on the farm are renamed “generic” base acres.
Benchmark price
The higher of the reference price or the respective market year average price for the covered commodity. The benchmark price is used to compute annual ARCIndividual Coverage and ARC-County Coverage benchmark revenues.
Covered commodities
Include wheat, oats, barley, corn, grain sorghum, rice, soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe and sesame seed, dry peas, lentils, small chickpeas, large chickpeas and peanuts.
Effective price
For the specific covered commodity, the higher of the market year average price or the national average loan rate.
Generic base acres
Former upland cotton base acres. Generic base acres are not involved in, or subject to, base acre reallocation. If generic base acres are planted to a covered commodity in a given year, then those acres are considered base acres for that planted covered commodity in that crop year. For example, if a farm with 500 generic base acres plants 250 of those generic base acres to corn, and the farm elected ARC-County Coverage for corn, then those 250 generic base acres are treated as corn base in that crop year and receive an ARC-County Coverage payment if one is triggered.
Limited resource producer
Limited resource producer status may be determined using the USDA Limited Resource Farmer and Rancher Online Self Determination Tool located on the Limited Resource Farmer and Rancher page at lrftool.sc.egov.usda.gov. The automated system calculates and displays adjusted gross farm sales per year and the higher of the national poverty level or county median household income.
Market year average (MYA) price
Reflects the average price received by farmers across the nation at the point of first sale, across all grades and qualities of the crop. USDA publishes MYA price projections in the monthly World Agricultural Supply and Demand Estimates report.
Reference price
Prices for covered commodities set in Title I of the 2014 Farm Bill that apply for 2014-2018 crops and are used in the PLC and ARC programs. For example, the reference price for wheat is $5.50 per bushel for 2014-2018 crops.
Socially disadvantaged producer
Includes American Indians or Alaskan Natives, Asians or Asian Americans, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics, and women.