FSA Scoop

FSA is in the process of issuing ARC-CO, PLC and CRP payments. If you do not receive your payment by Nov. 1, please call our office so we can determine why a payment has not been issued. 

As you look at your payments, it is good to have a general understanding of how the programs operate. The Agriculture Risk Coverage – County (ARC-CO) program is designed to provide benefits when the county average revenue for a crop in a specific year falls below 86 percent of the county expected revenue for that crop. 

The expected revenue is based upon a five-year historical county average yield and national average market price – excluding the highest and lowest yield and price in each of those averages. When actual revenue falls below the guaranteed revenue, payments for the difference are issued to participants who have base acres for that covered commodity.  

The Price Loss Coverage (PLC) program is designed to provide benefits when the national average market price for a crop is below that crop’s “reference” price. For example, the reference price for corn is $3.70/bu. and the 2016 market year average price was determined to be $3.36/bu., for a difference of $0.34/bu. The payment is calculated by taking the PLC payment rate times 85 percent of the base acres times the PLC yield for that commodity on that farm. Reference prices were set by the 2014 Farm Bill and will remain the same through 2018.

In addition, ARC-CO program provisions allow for separate revenue and payment rate calculations for irrigated and non-irrigated crops when at least 25 percent of the crop acreage has been historically irrigated and at least 25 percent of the crop acreage has been historically non-irrigated in a county.

ARC-CO payment rates for farms administered in Perkins County are:

Irrigated Corn: $90.96/ac; Non-irrigated Corn: $13.60/ac; Irrigated Grain Sorghum: $41.50/ac; Wheat: $16.38/ac; Dry Peas: $41.50/ac.

PLC payment rates, which apply across the nation, are: 

Corn: $0.34/bu; Grain Sorghum: $1.16/bu; Wheat: $1.61/bu; Oats: $0.34/bu.

All 2016 ARC/PLC payments will be reduced by a 6.8 percent sequestration rate, as mandated by the Budget Control Act of 2011. 

For additional information, contact our office or visit www.fsa.usda.gov/arc-plc. Program enrollment for the 2018 crop year begins in our offices on Nov. 1, 2017.