USDA Sets 2015-Crop Rice PLC Payment Rates

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Market-year average prices for 2015 long grain and medium/short grain rice will result in payments under the Price Loss Coverage (PLC) program for eligible producers, according to USDA.

Payments under PLC are generated when the market-year average price is under the reference price for a covered commodity:

Following are the 2015-crop rice PLC rates:

As for Agriculture Risk Coverage – County (ARC-CO) payment rates for long grain and medium/short grain rice, actual crop revenue is calculated by multiplying the actual average county yield for the covered commodity times the higher of either the market year average price or the national loan rate for the covered commodity. Once the yield is known for a specific county and covered commodity, the ARC-CO actual revenue can be determined for long grain rice and medium/short grain rice.

Comments: The only commodities where PLC payment rates have not yet been determined for 2015 crops are those for minor oilseeds (large and small chickpeas, sunflowerseed, flaxseed, mustard seed, rapeseed, safflower, crambe and sesame seed) and temporate Japonica rice. The market year price for minor oilseeds will be published November 30, 2016, while the price for temporate Japonica rice will be released January 31, 2017.

NOTE: This column is copyrighted material; therefore reproduction or retransmission is prohibited under U.S. copyright laws.