Sign-up for USDA’s Agriculture Risk Coverage and Price Loss Coverage programs for the 2021 crop year opened Oct. 13 and ends March 20. These safety net programs help farmers weather fluctuations in revenue or price for certain crops. More than $5 billion in payments have gone to U.S. producers who signed up for the 2019 crop year.
“Through programs like ARC and PLC, we can help farmers mitigate the financial stress,” says Amanda De Jong, USDA Farm Service Agency director for Iowa. “Take time to evaluate your program elections and enroll for the 2021 crop year.”
ARC provides income support payments on historical base acres when actual crop revenue declines below a specified guaranteed level. PLC provides income support payments on historical base acres when the effective price for a covered commodity falls below its reference price. Covered commodities include 20 different kinds of crops — with corn and soybeans being key for Iowa.
Producers can elect coverage and enroll in crop-by-crop ARC-County or PLC, or ARC-Individual for the entire farm, for 2021 crop year. Although election changes for 2021 are optional, enrollment (signed contract) is required for each year of the program. If you have a multiyear contract on the farm and make an election change for 2021, it will be necessary to sign a new contract.
If an election isn’t submitted by the March 15 deadline, the election defaults to the current election for crops on the farm from the prior crop year. For crop years 2022 and 2023, farmers have an opportunity to make new elections during those sign-ups. Farm owners can’t enroll in the program unless they have a shared interest in the farm.
For more information and assistance, contact your local USDA service center.