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ARC/PLC Program
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The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs were authorized by the 2014 and 2018 Farm Bills.
Agriculture Risk Coverage-County (ARC-CO)
The ARC-CO program provides income support tied to historical base acres, not current production, of covered commodities. 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.
What’s Changed
What has changed under the 2018 Farm Bill compared to the 2014 Farm Bill?
- The effective reference price replaces the reference price for calculating benchmark revenues under ARC and payment rates per unit under PLC.
- ARC-county yields are based on data from the Risk Management Agency rather than data from the National Agricultural Statistics Service.
- ARC-county yields are trend adjusted.
- Yield designation status under ARC county increases the number of counties from an “All” type designation to an irrigated/non-irrigated designation.
- Seed cotton was added as a covered commodity and generic base acres were eliminated beginning with the 2018 crop, the last year of the 2014 Farm Bill. Seed cotton continues to be included as a covered commodity under the 2018 Farm Bill.
- Producers may elect for ARC or PLC by covered commodity or ARC-IC for 2019 and 2020 and re-elect each year thereafter through 2023.
- One-time opportunity to update PLC program payment yields that take effect beginning with the 2020 crop year.
- The effective reference price, ARC-county benchmark yields, and ARC-county benchmark prices calculations are based on a one-year lag (i.e., For program year 2019, crop years 2013-2017 will be used to calculate the effective reference price, ARC-county benchmark yields, and ARC-county benchmark prices, and ARC-individual coverage).
Resources
Yield Update Calculator (2020 Crop Year) and CCC-867 Generator
Web Tools
The Agricultural and Food Policy Center (AFPC) at Texas A&M University, in conjunction with the Food and Agricultural Policy Institute (FAPRI) at the University of Missouri. https://www.afpc.tamu.edu/tools/farmbill/2018/
National Coalition for Producer Education (NCPE), led by the University of Illinois. fd-tools.ncsa.illinois.edu
Program Data
The Program Data section provides data on PLC substitute yields and other data as well as ARC/PLC payment rates, reference prices, and other program year specific data. Click here to review the Program Data
ARC/PLC Library
This page provides detailed information on the operation of ARC and PLC. Click here to review the ARC/PLC Library
Program Payment Maps
This page provides detailed information on the program payment maps. Click here to review the Program Payment Maps
FAQs
