WASHINGTON, DC – USDA is preparing to issue $1.8 billion in Agriculture Risk Coverage (ARC) and Price Loss Coverage program (PLC) payments for the 2020 crop year, and for producers enrolled in PLC, those with barley, canola, chickpeas, dry peas, flaxseed, lentils, peanuts, seed cotton, and wheat will receive a payment.
Under the 2018 Farm Bill program, both ARC and PLC provide payments to eligible producers when either revenue or prices for a specified crop fall below a set rate.
The payments, USDA explains, are providing critical support to help mitigate fluctuations in the market, and ARC and PLC payments for a given crop year are paid out the following fall to allow actual county yields and the Market Year Average prices to be finalized.
More than 1.7 million contracts were signed in 2019, and in 2020 the number of contracts expanded to just under 1.8 million, and for the crop year 2021, exceeded the 1.8 million benchmark.
(SOURCE: All Ag News)
