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USDA Payments for 2014 Crop Year Released

December 3, 2015 - Mollie Aronowitz, AFM

Earlier this month, 2014 safety-net payments for the 2014 crop year were announced by USDA’s Farm Service Agency (FSA). Two programs, the Agriculture Risk Coverage-County (ARC) and Price Loss Coverage (PLC), were authorized by the 2014 Farm Bill. Farm operators were required to sign up for a program this spring and landowners were required to confirm operator’s intentions with a signature.

USDA reports nearly one half of the 1.7 million farms that signed up for either the (ARC) or (PLC) programs will receive safety-net payments for the 2014 crop year. Barley, corn, grain sorghum, lentils, oats, peanuts, dry peas, soybeans and wheat are the crops covered.

How are payments calculated? Safety-net payments are paid when market forces or weather events cause unexpected drops in crop prices or revenues. As a reminder, here is a brief explanation of each program:


Agriculture Loss Coverage-County (ARC-CO): The ARC-CO program provides revenue loss coverage at the county level. 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.


Price Loss Coverage (PLC): PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity.

According to USDA, 96 percent of soybean farms and 91 percent of corn farms, elected the ARC-CO option. We recently received information on ARC-CO payments for each county in Iowa. The following charts show payments for both corn and soybeans.

We will know if there will be payments for this year’s crop in November 2016. While 2014 payment numbers should not be a significant factor in any decision making, it is helpful additional information to remain well informed in today’s farming environment.

If you are a landowner seeking advice or assistance on USDA matters, Peoples Company’s Land Management is available to assist. Our Land Managers visit county offices across the state and keep up to date on current programs and offerings.

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