USDA provides $ 1.8 billion to compensate for market fluctuations


WASHINGTON – The United States Department of Agriculture is making $ 1.8 billion in payments to agricultural producers who have enrolled in agricultural risk coverage and price loss coverage programs for the 2020 crop year. payments provide essential support to help mitigate fluctuations in income or prices for certain crops. These two USDA safety net programs are helping producers of certain crops to rebuild themselves better after dealing with the impacts of COVID-19 and other challenges.

Additionally, the USDA Agricultural Services Agency encourages producers to contact their local USDA Service Centers to make or change choices and to register for 2022 ARC or PLC, providing future protections against fluctuations in the price. Marlet. The election and registration period began on October 18, 2021 and ends on March 15, 2022.

“As we rebuild better than before, we will continue to support our farmers, ranchers and producers as they overcome the challenges associated with COVID-19, climate change and other issues,” said the administrator of the FSA, Zach Ducheneaux. “We also know that producers prefer to get good prices for their crops in the market, but these programs provide stability when markets are volatile, which makes a big difference in the lives of farm families across the country. “


ARC and PLC payments for a given crop year are made the following fall to help finalize actual county yields and average market year prices. This month, the FSA processed payments to producers registered in 2020 ARC-County (ARC-CO), ARC-Individual (ARC-IC) and PLC for covered commodities that triggered for the crop year.

For ARC-CO, check the 2020 ARC-CO Benchmark Yields and Revenues online database for the payment rates applicable to their county and each covered product.

For the PLC, payments were triggered for barley, canola, chickpeas (large and small), dry peas, flaxseeds, lentils, peanuts, cotton seed and wheat. More information on payments for rice will be announced later this fall and early 2022.

For ARC-IC, growers should contact their local FSA office for additional information regarding the 2020 payment information, which relies on the producer-specific yields for the crop and the farm to determine the yields. benchmark and actual returns for the year when calculating income.


More than 1.7 million contracts were signed in 2019. In 2020, producers signed nearly 1.8 million ARC or PLC contracts and 251 million out of 273 million base acres were enrolled in the programs. In 2021, signed contracts exceeded 1.8 million.

Since ARC and PLC were authorized by the Farm Law of 2014 and re-authorized by the Farm Law of 2018, these safety net programs have paid more than $ 32.5 billion to producers of covered products.

“I am incredibly proud of our FSA staff who are working with producers to run elections and register for these important programs,” said Ducheneaux. “We are delighted with the registration in 2022 and hope producers will benefit from these valuable programs. “


Producers can choose coverage and sign up for ARC-CO or PLC, both of which are crop by crop, or ARC-IC, which applies to the entire farm. Although electoral changes for 2022 are optional, producers must register each year through a signed contract. Additionally, if a grower has a multi-year contract on the farm and makes a choice change for 2022, they will need to sign a new contract.

If an election is not submitted by the March 15, 2022 deadline, the election remains the same as the 2021 election for on-farm crops. Farm owners cannot enroll in either program unless they have an equity interest in the farm.

Products covered include barley, canola, large and small chickpeas, corn, crambe, flax seeds, sorghum, lentils, mustard seeds, oats, peanuts, dry peas , rapeseed, long grain rice, medium and short grain rice, safflower seeds, seed cotton. , sesame, soy, sunflower seeds and wheat.


In partnership with the USDA, the University of Illinois and Texas A&M University offer online decision-making tools to help growers make informed and educated decisions using harvest data specific to their respective farming operations. The tools include:

· Gardner-farmdoc Payment Calculator, a tool available through the University of Illinois allows producers to estimate payments for farms and counties for ARC-CO and PLC.

The ARC and PLC Decision Tool, a tool available through Texas A&M, allows tallow producers to estimate payouts and yield updates and expected payouts for 2022.


ARC and PLC are part of a larger safety net provided by the USDA, which also includes crop insurance and marketing assistance loans.

Producers are reminded that CRA and PLC elections and registrations may affect eligibility for certain crop insurance products.

Producers on farms with a PLC election have the option of purchasing the additional coverage option through their licensed insurance provider; however, producers on farms where ARC is the choice are not eligible for SCO on their acres seeded for that crop on that farm.

Unlike SCO, the enhanced coverage option is not affected by an ARC election. Producers can add an ECO regardless of the choice of agricultural program.

Upland cotton producers who choose to register seed cotton base acres with the ARC or PLC are not eligible for the Cumulative Income Protection Plan on their cotton planted acreage for that operation.

For more information on ARC and PLC, visit the ARC and PLC webpage or contact your local USDA service center.


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