By: Carl Zulauf, Professor, Ohio State University, 2014
Overview
The 2014 farm bill provides a choice between a Price Loss Coverage (PLC) program and an Agricultural Risk Coverage (ARC) program. The choice is not a 1 year decision; it is a 5-year decision. This post therefore examines one potential price behavior that may occur over multiple crop years. It suggests a simple method for estimating PLC payments. Results of this study should be used as an illustration of the strategic thinking that needs to occur regarding this 5-year decision. Click here to read entire article