ARC and PLC payments help Nebraska farmer

By Scout Nelson

The Farm Bill’s Title I provides two key income support options for farmers: the Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs. Farmers can select either program annually. ARC offers support when farm revenue is below a set guarantee based on historical data, while PLC provides payments if market prices fall under a reference price.

Payments for both programs are issued on “base” acres, which are assigned to a commodity but unrelated to the actual crop planted and are distributed each October following the crop year. For example, payments to Nebraska farmers for the 2023 crop were distributed last month.

In 2023, rapeseed was the only crop to trigger payments under the PLC program, representing less than .001% of base acres nationwide. However, USDA Farm Service Agency data revealed that ARC-County (ARC-CO) and ARC-Individual (ARC-I) payments were triggered.

By October 28, ARC-CO payments to Nebraska producers totaled nearly $57 million, with corn payments reaching $33 million, soybeans $10.5 million, and wheat $7.4 million. Payments under ARC-I totaled less than $1 million.

Payments for dryland corn in Nebraska ranged from $1.03 per acre in Custer County to $85.16 per acre in Cuming County, averaging $56.64 per acre. Soybean payments ranged from $7.47 per acre in Pierce County to $59.79 per acre in York County, with an average payment of $43.04. Only Hitchcock County producers received payments for irrigated corn and soybeans, with rates at $34.92 and $60.78 per acre, respectively.

Wheat payments were provided for both irrigated and dryland farming practices. Dryland wheat payments ranged from $9.27 per acre in Morrill County to $32.54 per acre in Hitchcock County. A dozen counties received payments for irrigated wheat, with rates from $0.32 to $40.57 per acre.

Payments combining dryland and irrigated practices were issued in 46 counties, ranging from $21.75 to $39.72 per acre.

This financial assistance through ARC and PLC programs provides crucial support to Nebraska farmers, helping them manage market fluctuations and secure revenue for essential crops.

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