By: Wm. Bruce Clevenger, OSU Extension
The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs were authorized by the 2014 and 2018 Farm Bills. Both programs are risk management tools. The ARC-CO (county) program provides income support tied to historical base acres, not current production, of covered commodities. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.
The Farm Service Agency (FSA) publishes county-level data online that provides the details used in the ARC-CO calculations. The 2022 Program Year-specific data contains the ARC-CO Benchmark Yields and Revenues using county-level yields and Market Year Average prices from 2016-2020. The data is organized by state and county name from Autauga County, Alabama to Weston County, Wyoming.
To access the data, visit the link and make two additional clicks:
Click 2022 Program Year Specific Data
Click 2022 ARC-County Benchmark Yields and Revenues (Excel format)
A 2022 ARC-CO payment is made when the actual 2022 county crop revenue is less than the Guarantee Revenue for the covered commodity. The Guarantee Revenue is 86% of the county Benchmark Revenue, based on the Olympic average county yields and Olympic average Market Year Average (MYA) price for five prior years.
Q: What is the value of knowing your county’s 2022 Guarantee Revenue?
A: A producer can then contemplate conditions that may occur in national price and their specific county yields that would trigger or not trigger a 2022 payment.
Q: What is the difference between ARC-CO and PLC?
A: ARC-CO is a revenue (price and yield) risk program; PLC is a price risk program.
Q: How much do we know about the 2022 crop yields and 2022 commodity prices to make ARC/PLC decisions?
A: County yields are as (un)predictable as the weather. Even trend yields, retrospectively, have significant past volatility. Market analysis and futures prices can be some indicators of price, but they are based on what the market knows and reacts to today. Risk management is not about predicting the future, it’s about being prepared.
The USDA-FSA programs are offered as risk management choices and not a guaranteed payment program. Crop prices, production systems, and other risk management tools should be considered as producers make the ARC/PLC election/enrollment by March 15.