The Agriculture Risk (ARC) and Price Loss Coverage (PLC) programs provide financial protections to farmers from substantial drops in crop prices or revenues and are vital economic safety nets for most American farms. Both ARC and PLC were authorized by the 2014 and 2018 Farm Bills.
On Nov. 16, 2023, President Biden signed into law H.R. 6363, the Further Continuing Appropriations and Other Extensions Act, 2024 (Pub. L. 118-22), which extended the Agriculture Improvement Act of 2018 (Pub. L. 115-334), more commonly known as the 2018 Farm Bill. This extension now allows authorized programs, including ARC and PLC, to continue through Sept. 30, 2024.
The Agriculture Risk (ARC) and Price Loss Coverage (PLC) programs provide financial protections to farmers from substantial drops in crop prices or revenues and are vital economic safety nets for most American farms.
“Having the Farm Bill extension in place means business as usual for Agriculture Risk Coverage and Price Loss Coverage program implementation for the 2024 crop year – nothing has changed from previous years,” said FSA Administrator Zach Ducheneaux. “These programs provide critical financial protections against commodity market volatilities for many American farmers so don’t delay enrollment. Avoid the rush and contact your local FSA office for an appointment because even if you are not changing your program election for 2024, you still need to sign a contract to enroll.”
2024 Crop Year Election/Enrollment
The election and enrollment period opened Dec. 18, 2023 and runs through March 15, 2024. Producers can now make or change elections and enroll for 2024 ARC or PLC, providing future protections against market fluctuations.
Under the 2018 Farm Bill, farmers and landowners can choose between three commodity title alternatives: ARC-CO (payment based on county revenue), ARC-IC (payment based on individual farm revenue), and PLC (payment based on market year average). Program details for each are outlined below.
Agriculture Risk Coverage
The ARC-CO program provides income support tied to historical base acres, not current production, of covered commodities. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.
Individual Agriculture Risk Coverage (ARC-IC) program payments are issued when the actual individual crop revenue for all covered commodities planted on the ARC-IC farm is less than the ARC-IC guarantee for those covered commodities. ARC-IC uses producer’s certified yields, rather than county level yields.
Price Loss Coverage (PLC)
PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity.
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