The USDA has announced that nearly one half of the 1.7 million farms that signed up for either the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs will receive safety-net payments for the 2014 crop year.
“Unlike the old direct payments program, which paid farmers in good years and bad, the 2014 Farm Bill authorized a new safety-net that protects producers only when market forces or adverse weather cause unexpected drops in crop prices or revenues,” said Agriculture Secretary Tom Vilsack. “For example, the corn price for 2014 is 30% below the historical benchmark price used by the ARC-County program, and revenues of the farms participating in the ARC-County program are down by about $20 billion from the benchmark during the same period. The nearly $4 billion provided today by the ARC and PLC safety-net programs will give assistance to producers where revenues dropped below normal.”
The ARC/PLC programs primarily allow producers to continue to produce for the market by making payments on a percentage of historical base production, limiting the impact on production decisions.
Nationwide, 96% of soybean farms, 91% of corn farms, and 66% of wheat farms elected the ARC-County coverage option. Ninety-nine percent of long grain rice and peanut farms, and 94% of medium grain rice farms elected the PLC option. Overall, 76% of participating farm acres are protected by ARC-County, 23% by PLC, and 1% by ARC-Individual. For data about other crops, as well as state-by-state program election results, final price and payment data, and other program information including frequently asked questions visit http://www.fsa.usda.gov/arc-plc.
Crops receiving assistance include barley, corn, grain, sorghum, lentils, oats, peanuts, dry peas, soybeans and wheat. In the upcoming months, disbursements will be made for these crops after marketing year average prices are published by USDA’s National Agricultural Statistics Service. Any disbursements to participants in ARC-County or PLC for long and medium grain rice (except for temperate Japonica rice) will occur in November, for remaining oilseeds and also chickpeas in December, and temperate Japonica rice in early February 2016. ARC-individual payments will begin in November. Upland cotton is no longer a covered commodity.
The Budget Control Act of 3022, passed by Congress, requires USDA to reduce payments by 6.8%. For more information, producers are encouraged to visit their local Farm Service Agency office, visit http://offices.usda.gov.
The Agriculture Risk Coverage and Price Loss Coverage programs were made possible by the 2014 Farm Bill, which builds on higher economic gains in rural America over the past six years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative pubic-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life in rural America.
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