2018 Farm Bill Presentation: ARC vs. PLCDOWNLOAD FILE
January 7, 2019 - Author: Roger Betz, Michigan State University Extension
This presentation explains the differences between Agriculture Risk Coverage and Price Loss Coverage as defined in the 2018 Farm Bill. The ARC program provides revenue-based payments when farm revenue falls below a “Coverage Guarantee” level. While the PLC program provides price-based payments when prices are less than the “Reference Price” level and uses an individual farm’s PLC yields to determine the payment rate.
Other helpful PLC and ARC decision-making resources from Michigan State University Extension include the ARC vs. PLC Decision Tool Help Sheet, a guide to help users navigate the ARC vs. PLC spreadsheet calculator which is designed to help producers make the decision between Agricultural Risk Coverage program (ARC) versus the Price Loss Coverage (PLC) program by crop and farm. The decision tool has built-in information from each county and helps farmers make decisions for each individual farm for corn, wheat, and soybeans.