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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:

June 30, 2020 – 2020 Crop Year Enrollment

July 15, 2020 – 2019 ARC-IC elected and enrolled farms must certify farm yields for 2013 - 2019

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.

 

Agriculture Risk Coverage-County (ARC-CO) and Individual Agriculture Risk Coverage (ARC-IC)

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.

Individual Agriculture Risk Coverage (ARC-IC) program payments are issued when the actual individual crop revenue for all covered commodities planted on the ARC-IC farm is less than the ARC-IC guarantee for those covered commodities. ARC-IC uses producer’s certified yields, rather than county level yields.

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.

 

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

 

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 and Natural Resources Conservation Service 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.