In a recent announcement, the U.S. Department of Agriculture (USDA) revealed that agricultural producers can now sign up for the Farm Service Agency’s (FSA) Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the upcoming 2024 crop year. Producers have until March 15, 2024, to complete their enrollment and make any election changes. The Agriculture Improvement Act of 2018, known simply as the 2018 Farm Bill, has been extended through September 30, 2024. The extension allows ARC and PLC programs to continue supporting farmers. Failure to meet the deadline means their election remains the same as the 2023 choice for commodities on the farm. Additionally, farm owners can only enroll if they have a shared interest in the cropland.
Producers can choose between ARC-County (ARC-CO) or PLC for crop-by-crop protection, or ARC-Individual (ARC-IC) for overall farm protection. While election changes are optional for 2024, a signed contract is required each year for enrollment. A producer with a multi-year contract on the farm will automatically continue for 2024 unless an election change is made.
Covered commodities eligible for these programs include a range of crops such as barley, corn, soybeans, and wheat. ARC and PLC payments are disbursed the following fall, aiding farmers in managing revenue and price fluctuations for certain crops. Payments for potential triggers in the 2023 crop year will be issued in the fall of 2024.
Producers should be aware that ARC and PLC elections can impact eligibility for crop insurance products. While the Supplemental Coverage Option (SCO) is available for farms with a PLC election, those with an ARC election are ineligible for SCO on their planted acres. The Enhanced Coverage Option (ECO), however, remains unaffected by the ARC election. Upland cotton farmers enrolling seed cotton base acres in ARC or PLC are ineligible for the stacked income protection plan (STAX) on their planted cotton acres for that farm.
Brian German
Ag News Director / AgNet West