Front page of Farm Bill analyzer

MSU Farm Bill Analyzer 2021

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January 14, 2021 - Author:

This spreadsheet is designed to help producers make the decision between the Farm Bill programs administered by USDA.  These programs include: Agricultural Risk Coverage - County (ARC-Co), Agricultural Risk Coverage – Individual (ARC-IC) and Price Loss Coverage (PLC).  These programs can be selected by crop and by farm.

The ARC programs provide revenue-based payments when farm revenue falls below a “Coverage Guarantee” level. While the PLC program provides price-based payments when prices are less than the “Reference Price” level and uses an individual farm’s PLC yields to determine the payment rate.

UPDATE (2021): A new feature added for 2021 is the consideration of crop insurance options like the Supplemental Coverage Option (SCO) and the new Enhanced Coverage Option (ECO).  These are important factors in determining which Farm Bill program may be best and provides the best risk protection for an individual farm.   

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 prices for these insurance option.

Other helpful PLC and ARC decision-making resources from Michigan State University Extension include the 2018 Farm Bill Presentation: ARC vs. PLC which explains the differences between Agriculture Risk Coverage and Price Loss Coverage as defined in the 2018 Farm Bill. The ARC program provides revenue-based payments when farm revenue falls below a “Coverage Guarantee” level. While the PLC program provides price-based payments when prices are less than the “Reference Price” level and uses an individual farm’s PLC yields to determine the payment rate. 

Download 2018 Farm Bill Presentation: ARC vs. PLC

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Tags: 2018 farm bill, farm bill, farm management, field crops, msu extension


Related Topic Areas

Farm Management, Farm Bill


Authors

Jonathan LaPorte

Jonathan LaPorte
laportej@msu.edu

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