Message From the CED – Phillip E. Lautenschlager II

Producers who have farms that were 100% prevented planting and or 100% failed crops (zero yields) for the 2019 crop year will have a 100 percent revenue loss when compared to the ARC-IC Farm Guarantee. ARC-IC decision tool calculators will show payments are projected for these farms if the data is properly entered because the actual revenue for these farms is zero. However, the total revenue loss will not be fully compensated because the ARC-IC payment rate is capped at 10% of the ARC-IC farm benchmark revenue. Producers in this situation will want to do some homework. The remaining uncompensated revenue loss may become compensable by enrolling additional farms in ARC-IC. Doing so may reduce the ARC-IC payment rate yet increase the ARC-IC payment acres causing an overall increase in the potential ARC-IC payment for the program year. Adding too many farms or different combinations of farms to the ARC-IC enrollment scenario may have the opposite effect, reducing the payment rate to the extent the overall potential ARC-IC payment decreases. Because of this, this office will not navigate the available calculators and decision tools with producers as the scope and constitution of your operation, crops grown, shares, prices, yields, and the number of acres are all relevant and contributing factors in determining potential payments.

This office will certainly assist by providing you with all the available data needed to make an informed decision.  As always, the staff is prepared to answer questions you may have.

Your continued patience is appreciated as we work through the ARC/PLC enrollment period.

Respectfully,

Phil