Safety Net Program Payments for 2018 Have Started
Agricultural producers now can enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs – two U.S. Department of Agriculture (USDA) safety net programs – for the 2020 crop year. Meanwhile, producers who enrolled farms for the 2018 crop year have started receiving more than $1.5 billion for covered commodities for which payments were triggered under such programs.
“These two programs provide income support to help producers manage the ups and downs in revenues and prices,” said Richard Fordyce, Administrator of USDA’s Farm Service Agency (FSA). “USDA is here to support the economic stability of American agricultural producers by helping them maintain their competitive edge in times of economic stress. We encourage producers to consider enrolling in one of these programs.”
ARC provides income support payments on historical base acres when actual crop revenue declines below a specified guaranteed level. PLC provides income support payments on historical base acres when the effective price for a covered commodity falls below its reference price. The 2018 Farm Bill reauthorized and updated both programs.
Signup for the 2020 crop year closes June 30, 2020, while signup for the 2019 crop year closes March 15, 2020. Producers who have not yet enrolled for 2019 can enroll for both 2019 and 2020 during the same visit to an FSA county office.
ARC and PLC have options for the farm operator who is actively farming the land as well as the owner of the land. Farm owners also have a one-time opportunity to update PLC payment yields beginning with crop year 2020. If the farm owner and producer visit the FSA county office together, FSA can also update yield information during that visit.
Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.
2018 Crop Year ARC and PLC Payments
FSA began processing payments last week for 2018 ARC-County (ARC-CO) and PLC on covered commodities that met payment triggers on enrolled farms in the 2018 crop year. In addition to the $1.5 billion now in process, FSA anticipates it will issue another $1 billion in November once USDA’s National Agricultural Statistics Service publishes additional commodity prices for the 2018 crop.
Producers who had 2018 covered commodities enrolled in ARC-CO can visit www.fsa.usda.gov/arc-plc for payment rates applicable to their county and each covered commodity. For farms and covered commodities enrolled in 2018 PLC, the following crops met payment triggers: barley, canola, corn, dry peas, grain sorghum, lentils, peanuts, and wheat.
Oats and soybeans did not meet 2018 PLC payment triggers.
2018 PLC payment rates for the following covered commodities have not been determined: crambe, flaxseed, large and small chickpeas, long and medium grain rice, mustard seed, rapeseed, safflower, seed cotton, sesame seed, sunflower seed and temperate Japonica rice.
More Information
On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides income support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation.
For more information on ARC and PLC including two online decision tools that assist producers in making enrollment and election decisions specific to their operations, visit the ARC and PLC webpage.
For additional questions and assistance, contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.
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