Eligible farmers will need to make elections of either Agriculture Risk Coverage or Price Loss Coverage by March 15, 2020. This election will be in effect for two years, and after that on a year-to-year basis.
“Farmers who qualify get in free,” said Chuck Hanagan of the Farm Service Agency.
The following commodities are eligible for coverage, listed here with their reference price: Barley, $4.95 per bushel; Chick peas, large (Garbanzo bean, Kabuli), $21.54 per hundredweight; Chickpease, small (Garbanzo bean, Desi), $1904 per cwt; Corn, $3.70 per bu; Dry Peas $11 per cwt; Grain Sorghum, $3.95 per bu; Lentils, $19.97 per cwt; Oats, $2.40 per bu; Canola, $20.15 per cwt; Crambe, $20.14 per cwt; Flaxseed, $11.28 per bu, Mustard, $20.15 per cwt; Rapeseed, $20.14 per cwt; Safflower, $20.15 per cwt; Sesame Seed, $20.14 per cwt; Sunflower, $20.15 per cst; Peanuts, $535 per ton; Rice, Long Grain, $14 per cwt; Rice, Short Grain, $16.10 per cwt; Rice, Temperate Japonica, $16.10 per cwt; Soybeans, $8.40 per bu; Wheat, $5.50 per bu; Seed Cotton $.0367 per pound. The National Loan Rates are lower; for example, Barley’s rate is $2.50; Lentils, $13 per cwt; Peanuts, $355 per ton.
The Agricultural Risk Coverage is an income support program that provides payments when actual crop revenue declines below a specified guarantee level. The Price Loss Coverage Program provides income support payments when the effective price for a covered commodity falls below its effective reference price, according to a United States ag department handout on the 2018 Farm Bill.
The ARC-CO program payments are triggered when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the crop. The Individual Agriculture Risk Coverage program payments are issued when the actual individual crop revenue for all covered commodities planted on the ARC-IC farm is less than the ARC-IC guarantee for those covered commodities. ARC-IC uses producer’s certified yields, rather than county level yields. ARC-IC payments are dependent upon the planting of covered commodities on the farm.
Price Loss Coverage program payments are issued when the effective price of a covered commodity is less than the respective effective reference price for that commodity. The effective price equals the higher of the national market year average price (MYA) or the national average loan rate for the covered commodity. The effective reference price is the lesser of 115 percent of the reference price or an amount equal to the greater of the reference price or 85 percent of the average of MYA prices from the five preceding years, excluding the highest and lowest price. .