Producers will have a one-time choice between the revenue-based Agricultural Risk Coverage (ARC) program and the Price Loss coverage (PLC) program. Producers failing to make a choice will be in the PLC program for 2015-2018, and will have no farm program coverage for 2014. If the ARC program is chosen, there will be a choice between the county ARC program or the individual ARC program. Producers that opt for the county ARC can choose between the ARC program and the PLC program for different crops on a farm unit. Producers choosing the individual ARC program will need to have all crops on that farm unit in the ARC program. Any potential PLC or ARC payments for the 2014 crop year will not occur until October 2015.
The PLC program will function similarly to the previous counter-cyclical program, with payments made if the 12-month market year average (MYA) price falls below the established reference price (target price) for a given crop. The marketing period for the 12-month price for corn and soybeans is Sept. 1 in the year that the crop was produced until Aug. 31 of the following year. PLC payments would be made in October of the following year, and will be made on 85% of eligible crop base acres for a given crop. (Corn example: 100 acres x 165 bu./acre payment yield x 30¢/bu. payment level x .85 = $4,207.50 payment.)
The new PLC reference (target) prices for 2014-2018 will be $3.70 per bushel for corn, $8.40 per bushel for soybeans and $5.50 per bushel for wheat. Previous target prices were $2.63 per bushel for corn, $6.00 per bushel for soybeans and $4.17 per bushel for wheat. CCC national loan rates will remain at current levels for the next five years, which are $1.95 per bushel for corn, $5.00 per bushel for soybeans, and $2.94 per bushel for wheat. Provisions for CCC crop loans and potential loan deficiency payments (LDPs) under the new farm bill will remain the same as in previous years.