(Denver, Colorado), November 12, 2015 – USDA Colorado Farm Service Agency (FSA) Executive Director, Leland Swenson announced that many Colorado farms enrolled in the new safety-net program established by the 2014 Farm Bill have started receiving financial assistance for the 2014 crop year. The programs, known as Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC), are designed to protect against unexpected drops in prices or revenue due to market or production downturns.

USDA Issues Safety Net Payments to Colorado Farmers Facing Market Downturn

Contact:
Patti Finke 720-544-2889

(Denver, Colorado), November 12, 2015 – USDA Colorado Farm Service Agency (FSA) Executive Director, Leland Swenson announced that many Colorado farms enrolled in the new safety-net program established by the 2014 Farm Bill have started receiving financial assistance for the 2014 crop year. The programs, known as Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC), are designed to protect against unexpected drops in prices or revenue due to market or production downturns.

“These new safety net programs provide help when prices and revenues fall below normal, unlike the previous direct payments program that provided funds even in good years,” said Swenson. “Producers in Colorado who produced corn, wheat and numerous additional commodities experienced a drop in price below the historical benchmark price established by the ARC-County program.”

Producers in some counties also experienced production losses due to adverse weather conditions. These types of losses equate to revenue losses that fall below a historical threshold that results in payments to producers.

The ARC-County based option protects against lower revenue from a combination of lower prices and yields.

“Payments by county can vary because average county yields will differ,” said Swenson.

More details on the price and yield information used to calculate the financial assistance from the safety-net programs is available on the FSA website at www.fsa.usda.gov/arc-plc.

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