MSU Farm Bill Analyzer 2023DOWNLOAD
January 16, 2023 - Author: Roger Betz
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 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.
Making the decision more complex for producers is the importance of considering crop insurance options that tie-in to these farm bill programs. Producers will have options to utilize, yield, revenue protection crop insurance, Supplemental Coverage Option (SCO) and the Enhanced Coverage Option (ECO).
There are also several factors, like personal yield history, projected prices, and insurance prices for producers to consider. The MSU Farm Bill Analyzer is a decision tool designed to help producers decide which Farm Bill program is the best fit for their 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.
For a walk-through on how to use the Farm Bill Analyzer, download the: 2021 Farm Bill Analyzer Help Sheet
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.