By Jamie Martin
The 2023 Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs offer income support to American farmers under the farm bill's Title I. These payments aim to offset losses due to market price fluctuations and reduced yields.
For the 2023 crop year, only rapeseed qualified for PLC payments due to its market year average price falling below the set reference price. This program assists farmers when commodity prices dip significantly. Rapeseed, being a smaller crop in terms of acreage, stood out in the PLC program this year.
In contrast, the ARC-County (ARC-CO) program triggered payments across multiple crops when actual county revenue dropped below 86% of the benchmark revenue, calculated from average prices and yields over the past five years. Notable crops that received ARC-CO payments included corn, wheat, and soybeans, reflecting broader agricultural vulnerabilities despite not being eligible for PLC payments.
The differences in payments between these two programs highlight the complexity of agricultural support mechanisms, which adjust based on market conditions and crop performances. This strategic financial support is crucial, particularly in an era of fluctuating market prices and varying crop yields.
While the 2023 ARC-CO and PLC payment mechanisms provided necessary support, they also underscore the challenges of ensuring all-encompassing coverage for all crops and scenarios within the agricultural sector.
Photo Credit: gettyimages-eugenesergeev
Categories: National