OSU Extension ARC/PLC Program election decision tool

By Chris Zoller, Extension Educator, ANR, Tuscarawas County

The 2018 Farm Bill reauthorized the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) safety net programs that were in the 2014 Farm Bill. Producers must enroll in ARC/PLC for the 2022 crop year through their local Farm Service Agency office. The signup period for the 2022 crop year is open now, and the deadline to enroll and make amendments to program elections is March 15, 2022.

If changes are not made by March 15, 2022 deadline, the election defaults to the programs selected for the 2021 crop year with no penalty.

ARC/PLC program options

Producers again have the option to enroll covered commodities in either ARC-County, ARC-Individual, or PLC. Program elections are made on a crop-by-crop basis unless selecting ARC-Individual where all crops under that FSA Farm Number fall under that program. ARC program payments are made when crop revenue falls below a guaranteed level, while PLC payments are made when a crops specific effective price is lower than its reference price.

Reference prices

While the 2018 Farm Bill does allow for reference prices to change, indications are that we will not see any changes in 2022. The established reference prices are: corn $3.70; soybeans $8.40; and wheat $5.50. Unless we experience significant reductions in yield and/or price, it is unlikely any ARC/PLC payments will be made this year.

Decision tool

OSU Extension has a newly updated software program to assist producers with evaluating ARC/PLC scenarios and options. This tool is available by contacting your local Extension Educator.

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