Coppess says not only will farmers and landowners be locked into their ARC or PLC decisions for five years, “if growers don’t make a program choice, they will default into the PLC program in 2015.”

Payments will still be made based on a farm’s total base acres. Farm owners may retain their current base acre allocation across program crops. They may also reallocate base acres, based on proportion of planted and prevent planted acres in 2009 to 2012 years, Coppess says.

In PLC, the program is triggered when the Market Year Average (MYA) price is below the designated crop Reference Price of $3.70 for corn and $8.40 for soybeans. For MYA 2014, that means the average price from the beginning of the marketing year on Sept. 1 through Aug. 31, 2015. The PLC payment rate equals the reference price multiplied by the payment yield and 85% of the crop’s base acres.

price loss coverage farm programIn this example, PLC is triggered when the MYA price is below the designated crop Reference Price of $3.70 for corn (it is $8.40 for soybeans). For MYA 2014, it’s the average price from Sept. 1 through Aug. 31, 2015. The PLC payment rate equals the reference price multiplied by the payment yield and 85% of the crop’s 100 base acres, or $1,913 in total payments.

Graphic Courtesy Jonathan Coppess, U of IL.