The clock is ticking for farmers who haven’t made their elections for Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs. The deadline is March 16 and those who don’t sign paperwork with Farm Service Agency (FSA) will default to previous selections and not be eligible for any potential 2019 payments.
“[Signups] have definitely been slower this year, it’s been tough getting producers in,” says Julie Brooks, USDA FSA county executive director. “The response is they either want to go to a meeting to figure out which program or they really just haven’t decided which program.”
Just 50% of farmers in Missouri are signed up for either ARC or PLC, according to Jared Singer, USDA FSA district director.
“It is down to crunch time. We still have a lot of producers we need to see. You can make an election today and if you have an epiphany and decide you need to change your selection, you can still do that up until the March 16 deadline,” he adds.
The ARC-County program is tied to historical based acres and payments are triggered with the actual county crop revenue is less than the ARC-County guarantee for the covered commodity. PLC, on the other hand, sends payments when the price of a covered commodity is less than the respective reference price for that commodity.
“A key difference in the 2018 Farm Bill is that producers are just making the election right now for 2019 and 2020,” Singer says. “And then, beginning in 2021, they’ll have the option for changing that election each year for the remainder of this farm bill.”
The biggest question farmers are asking agents is simply, ‘what should I choose?”
“Most of the producers here in Johnson County are going back to the programs they selected for the 2014 Farm Bill, which [for corn] was PLC and soybeans was ARC-County,” Brooks says. “You’ll have the opportunity to change up your election in 2021 so there’s not as much pressure as before. Really, there’s no reason to delay.”
Supplemental Coverage Option
Farmers who choose PLC can also opt into a Supplemental Coverage Option (SCO), though that’s a conversation to have with crop insurance agents, not FSA. SCO historically makes payments 30% to 35% of the years, according to Gary Schnitkey at Illinois FarmDoc.
There are two primary reasons to consider SCO, according to Schnitkey:
- SCO can lower premium costs for individuals taking revenue protection at an 85% coverage level. This happens when revenue protection coverage level is lower, and SCO is purchased to provide protection from 86% to the revenue protection coverage level.
- SCO can provide protection for individuals taking revenue protection at a lower coverage level (such at 75%). SCO can provide protection from 86% to the coverage level of the revenue protection policy.
Right now, there is no indication USDA will extend the deadline for enrollment in PLC or ARC—if you want to change your selection or be eligible for 2019 payment, head to your local FSA office soon. There are no provisions for late filing.
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