Remember ARC-CO Payments Are Not Contingent on Planted Acres

Published on: 14:31PM Oct 21, 2016

~~I was reading a comment a farmer had regarding their 2017 planting intentions.  In the comment, they indicated that they were leaning toward soybeans partly due to the fact that soybeans ARC-CO for their county would pay more than corn ARC-CO.  This, is in fact, wrong.

ARC-CO payments for corn, soybeans and all other crops are based upon your base acres at the time that you sign up.  It does not matter what crop you plant, you will be paid the same amount.  Therefore, base your 2017 planting intentions on the economics of what you plant, not any money you may get from ARC-CO.  That number will always be the same.

For example, assume you have 1,000 base acres of corn and 1,000 base acres of soybeans.  You expect to receive zero corn ARC-CO payments for the 2017 crop (paid in 2018) and $75,000 of soybean ARC-CO payments.  Whether you plant 2,000 acres of corn, 1,000 of each or 2,000 acres of soybeans, you will receive $75,000.