URBANA, IL – Farmers are facing a March 15, 2023, deadline to choose between two safety net programs in the farm bill: ARC-CO (Agriculture Risk Coverage – county version) and PLC (Price Loss Coverage) for the upcoming growing season.
According to economists with the University of Illinois (Farmdoc), the 2023 decision indicator suggests that for most program commodities ARC-CO will have the higher US average payment per base acre, including corn, soybeans, and wheat, while PLC is expected to have a higher US average payment per base acre for peanuts.
ARC-CO payments are not likely to be large and will likely occur only if county yield is well below trend.
If a production disaster occurs in a county, an ARC-CO payment for low yield may provide some assistance for financial stress due to low yields, but when making the decision, farmers may want to consider that SCO (crop insurance Supplemental Coverage Option) is available only with PLC.
Producers will need to make their election for each farm by March 15, 2023, at their local Farm Service Agency (FSA) office.
For more information, find a link to the document here: https://farmdocdaily.illinois.edu/2023/02/2023-arc-co-vs-plc-program-decision-indicator.html.
(SOURCE: All Ag News)