USDA California Farm Service Agency (FSA) announced that approximately all California farms that enrolled in safety-net programs established by the 2014 Farm Bill will receive financial assistance for the 2016 crop year. The programs, known as Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), are designed to protect against unexpected drops in crop prices or revenues due to market downturns.

USDA Issues Safety-Net Payments to California Farmers

USDA California Farm Service Agency (FSA) announced that approximately all California farms that enrolled in safety-net programs established by the 2014 Farm Bill will receive financial assistance for the 2016 crop year. The programs, known as Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), are designed to protect against unexpected drops in crop prices or revenues due to market downturns.

 

Producers in 33California counties have experienced a significant drop in prices or revenues below the benchmark established by the ARC or PLC program and thus, will receive payments totaling $45 million.  Payments related to grain and oil seed crops made up much of those payments. Cash flow from these payments is particularly helpful to farmers and ranchers in counties impacted by natural disasters.

 

Payments by county for an eligible commodity can vary because average county yields will differ.

 

Statewide, over 5,355 farms participated in ARC-County and nearly 2,632 farms participated in PLC.  More details on the price and yield information used to calculate the financing assistance from the safety-net programs is available on the FSA website at www.fsa.usda.gov/arc-plc and www.fsa.usda.gov/ca.

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