Farmers made a one-time program election for the 2014 Farm Bill. Many farmers in our area selected ACR-CO knowing large payments would be received the first few years. PLC was unknown due to the unknown of the marketing year average price. Would corn fall below $3.70 and soybeans under $8.40?
Now we can look back and see how ARC-CO and PLC worked. Here is a chart showing Hardin County, IA’s ARC-CO payments from 2014 to (estimated) 2018.
You can see that payments were high in the first couple years, then dropped off to zero in the last couple years. Total dollars received per acre was $122.39. This data is provided by ISU Decision Maker. You can select any county you would like to review. You can also input projections for the 2019-2023 crop years.
PLC coverage triggers when the marketing year average price falls below $3.70 for corn and $8.40 for soybeans. In the chart, you can see that corn fell below $3.70 in 2015-2018.
2014 Farm Bill PLC payments are based upon 90% of average farm yields from 2008-2012. The farm yield is different for each farm. I input an above average 170 bu. per acre farm yield in this scenario to see the payout potential, $117.17 over the 5 year span. In 2020, farmers will be able to update farm yields to reflect the 2013-2017 crop years.
Farmers will be able to elect ARC-CO or PLC for the 2019 and 2020 crop years when they certify their acres this year. In 2021-2023 farmers can change their program selection every year. These charts are helpful in running scenarios to make farm bill program decisions, ISU Decision Marker.