BOZEMAN, Nov. 10, 2015 – USDA Montana Farm Service Agency (FSA) State Executive Director Bruce Nelson announced that a number of Montana farms enrolled in the new safety-net programs established by the 2014 Farm Bill have begun to receive financial assistance for the 2014 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.

Montana FSA: USDA Issues Safety-Net Payments to Montana Farmers Facing Market Downturn

Media Contact: Jennifer Cole, 406.587.6786

For Immediate Release: Nov. 10, 2015

BOZEMAN, Nov. 10, 2015 – USDA Montana Farm Service Agency (FSA) State Executive Director Bruce Nelson announced that a number of Montana farms enrolled in the new safety-net programs established by the 2014 Farm Bill have begun to receive financial assistance for the 2014 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.

“These new safety-net programs provide assistance when prices and revenues fall below normal, unlike the previous direct payments program that provided funds even in good years,” Nelson said. “For example, the average price for the 2014 market year for wheat, barley, oats and corn were higher than or equal to the reference price established for the PLC program, so financial assistance did not occur for those crops.” To date, no crops grown in Montana have qualified for assistance under the 2014 PLC program.

Similarly, the county-based option of ARC protects against lower revenue from a combination of price and yield. Many county offices in Montana are issuing payments to eligible producers with base acres of covered commodities that suffered a revenue loss from previous years if those producers were enrolled in the 2014 ARC-County program.

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

Statewide, approximately 4,140 farms participated in ARC-County and approximately 25,334 farms participated in PLC. 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 and
www.fsa.usda.gov/mt.

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