Agriculture Risk Coverage and Price Loss Coverage Programs

The Agriculture Risk (ARC) and Price Loss Coverage (PLC) programs provide financial protections to farmers from substantial drops in crop prices or revenues and are vital economic safety nets for most American farms.

Program Deadlines

 

The following are important program deadlines:

September 30, 2020 – PLC Payment Yield Updates

 

How ARC & PLC Programs Work

Under the 2018 Farm Bill, farmers and landowners can choose between three commodity title alternatives: ARC-CO (payment based on county revenue), ARC-IC (payment based on individual farm revenue), and PLC (payment based on market year average). Program details for each are outlined below.

 


 

Program Eligibility, Election, & Enrollment

Election

All farm producers with interest in the cropland must make a unanimous election in 2019 of either ARC-CO or PLC on a crop-by-crop basis. Farmers can also choose Individual Agriculture Risk Coverage (ARC-IC) for all covered commodity base acres on a farm.

This election will apply to the farm for 2019 and 2020 crop years. Program election changes are permitted in crop years 2021, 2022, and 2023.

Enrollment

To be eligible for payments, producers must annually enroll their respective share interest of covered 
commodity base acres. For 2019 and subsequent years, enrollment will occur on a covered commodity-by-covered commodity base acre crop basis.

Contact your Farm Service Agency office at your local USDA Service Center for more information.

 

Program Details

 

What commodities are covered?

Covered commodities include wheat, oats, barley, corn, grain sorghum, rice, soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe and sesame seed, seed cotton, dry peas, lentils, small chickpeas, large chickpeas, and peanuts.

What are base acres?

A farm’s base acreage and program yield are historical averages of crop production and are used to calculate certain government payments, including ARC and PLC.

Can PLC yields be updated?

Owners will have a one-time opportunity in 2020 (for the life of the 2018 Farm Bill) to update PLC yields of covered commodity base crops on their farm, regardless of program election.

How are reference prices calculated?

Under the 2018 Farm Bill amendments, effective reference prices will be calculated to allow upward fluctuation of reference prices in times when historic price averages are higher than the established reference price for the covered commodity.

FSA publishes reference prices for all covered commodities with their ARC/PLC Program Data.

What are the crop insurance considerations?

Supplemental Coverage Option (SCO)

Producers who elect and enroll in PLC also have the option of purchasing coverage through the USDA Risk Management Agency (RMA).

Producers on farms with covered commodities that elect ARC are ineligible for SCO on their planted acres.

Stacked Income Protection (STAX)

Producers of upland cotton who choose to enroll seed cotton base acres in ARC or PLC are ineligible for the STAX on their planted cotton acres.

To be eligible for STAX coverage, producers must not enroll their seed cotton base acres into the ARC/PLC program.

Because enrollment is now completed on a commodity-by-commodity basis, producers can choose to enroll all base acres, except for cotton, if they wish to purchase STAX coverage.

Those producers who do enroll in ARC or PLC for seed cotton will have their STAX eligibility determined based on enrollment.

What is the ARC/PLC payment schedule?

If triggered, ARC-CO, ARC-IC, and PLC payments will issue:

  • 2019 - after Oct. 1, 2020
  • 2020 – after Oct. 1, 2021
  • 2021 – after Oct. 1, 2022
  • 2022 – after Oct. 1, 2023
  • 2023 – after Oct. 1, 2024

Resources

USDA and Partner Web-Based ARC/PLC Decision Tools

  • 2018 Farm Bill Decision Aid: This tool was created by the Agricultural and Food Policy Center at Texas A&M University, in conjunction with the Food and Agricultural Policy Institute at the University of Missouri.
  • ARC/PLC Calculator: This tool was created by the National Coalition for Producer Education, led by the University of Illinois.

Fact Sheets, Payment Maps, and Program Data

 

Find Your Local Service Center

We are committed to delivering USDA services to America’s farmers and ranchers while taking safety measures in response to COVID-19. While employees continue to staff our Service Centers, some are only available for phone appointments at this time. You can learn the status of your service center through this tool. Learn more at farmers.gov/coronavirus.

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Visit the Risk Management Agency website to find a regional or compliance office or to find an insurance agent near you.