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ARC or PLC?
Farmers have some decisions to make in the coming weeks regarding allocation of base acreage for their farm and then participation in the Agricultural Risk Coverage (ARC) or Production Loss Coverage (PLC) programs. University of Wisconsin Extension economist Dr. Paul Mitchell has run the numbers on both programs.
He says for starters, landowners need to make sure their crop yield and base acreage data is up-to-date. If you can, reallocate as much acreage as you can to corn “because your payments go up.” These are decisions to be made by the land owner by February 28th.
Next, the producer raising crops on the land needs to determine if they want to participate in the ARC or PLC programs. There are a number online tools available to plug-in the numbers from your farm and county to then determine which program is best for you. Mitchell suggests the program from the University of Illinois.
He says in general, ARC seems to be a better program for corn and soybeans, PLC looks better for wheat. But again, each farm is unique. He stresses the importance of signing up by March 31st, if you don’t you will automatically be enrolled in PLC and you will not get payments for this year.
Mitchell talks about the options:
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