Preparing for 2024 with passage of the 2018 Farm Bill extension

Jonathan LaPorte<laportej@msu.edu> and Molly Sears<searsmo1@msu.edu>, Michigan State University Extension -

MSU Extension has resources to help you make your Farm Bill commodity program decisions.

Overview of tool
Updated and streamlined, the MSU Farm Bill Analyzer decision tool examines potential risk scenarios you may experience in 2024.

The 2018 Farm Bill has been extended to cover the 2024 production season. With that extension, field crop producers will once again look to choose between the Farm Bill commodity programs of Price Loss Coverage (PLC) and Agricultural Loss Coverage (ARC). Deciding which program will work best for your farm can seem a bit complex. To aid you in making your Farm Bill decision, Michigan State University Extension has prepared several resources.

Updated and streamlined for the 2024 production season, the MSU Farm Bill Analyzer decision tool examines potential risk scenarios you may experience in 2024. With those scenarios in mind, the analyzer identifies which Farm Bill program will provide the best protection.

There are two primary decisions to make annually for current commodity programs. The first choice is between Agricultural Risk Coverage - County (ARC-CO) and Price Loss Coverage (PLC).  ARC-CO provides revenue-based payments when farm revenue falls below a “coverage guarantee” level. The PLC program provides price-based payments when prices are less than a “reference price.”

The second decision point is considering how the Supplemental Coverage Option (SCO) insurance policy ties-in to the choice between ARC-CO and PLC. If chosen, the premium-based option of SCO limits your Farm Bill program choice to PLC. Streamlining insurance considerations for 2024, the MSU Extension analyzer looks at how a combination of SCO & PLC compares to ARC-CO.

NOTE: In order to make the most use of this tool, producers are encouraged to meet with their crop specialist/insurance agent to discuss and obtain estimated premiums and payments for an SCO insurance option. Additional resources for calculating estimates are also provided within the analyzer. These estimates are not calculated within the analyzer itself.

MSU Extension will also be hosting a series of webinar programs as part of the Farm Policy and Risk Management Series. Historically these sessions have been presented as “Farm Bill Program & Crop Insurance Decisions – What Fits Your Farm.” These repeat sessions will help producers explore their options for 2024 Farm Bill commodity programs. MSU Extension experts will provide information on current policy updates, program statistics and payments from 2023 will also be highlighted. Speakers will also explain how program payments from ARC-CO and PLC will be calculated for 2024.

These programs will also feature returning guest speaker, and crop insurance agent, Elliott Alfredson from Eagle Valley Ag Risk Advisors, LLC to discuss insights into insurance policies. As well as provide examples using the MSU Farm Bill Analyzer decision tool.

The Farm Policy and Risk Management Series is a free program presented by Michigan State University Extension.

Click here to register for the Farm Policy and Risk Management Series

For the latest information on the Farm Bill, also visit the MSU Extension Farm Bill website.

This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).

Did you find this article useful?

You Might Also Be Interested In

Tag List
  • agriculture,
  • animal agriculture,
  • beef,
  • beginning farmer,
  • dairy,
  • farm bill,
  • farm business government programs,
  • farm business revenue insurance,
  • farm management,
  • field crops,
  • fruit & nuts,
  • msu extension,
  • sheep & goats,
  • swine,
  • vegetables

Events

News

Resources

  • follow us on youtube
  • follow us on linkedin
Michigan State University
  • Spartans Will.
  • © Michigan State University

MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential.

Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Quentin Tyler, Director, MSU Extension, East Lansing, MI 48824. This information is for educational purposes only. Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned.

The 4-H Name and Emblem have special protections from Congress, protected by code 18 USC 707.

We comply with the Federal Trade Commission 1998 Children’s Online Privacy Protection Act (COPPA).