Farm Bill Programs Offer Limited Support for 2024 Production Year

By Jonathan LaPorte

New data has emerged from the USDA on payment rates for both Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC-CO) programs. Estimated payments for corn, soybeans and wheat for 2024 are available, although market-year-average (MYA) pricing for corn and soybeans won’t be finalized until September. For Michigan field crop growers, there is no support expected from PLC and limited aid provided by ARC-CO. Depending on the crop, levels of support will vary in the ARC-CO program.

The lack of substantial support highlights why a number of reforms were included in recent legislation for both programs. But in order to better understand program adjustments, it’s important to recognize what factors influence payment rates.

Price Loss Coverage (PLC)

PLC payments are based on a market year average price (MYA). The market year begins at harvest and continues until the next harvest. For 2024 corn and soybean production, those months include September 2024 through August 2025, while wheat runs from June 2024 through May 2025. To trigger a payment, the market year average price must fall below a statutory reference price. The difference becomes PLC’s payment rate.