By Scout Nelson
The 2024/25 marketing year for wheat concluded on May 31, and the U.S. Department of Agriculture (USDA) announced the final marketing year average wheat price at $5.52 per bushel, which is $0.02 above the effective reference price. This means the Price Loss Coverage (PLC) program will not trigger payments for the 2024 wheat crop, as the price did not fall below the reference price.
However, some Nebraska counties faced yield losses last year that caused county-level revenues to drop below their respective Agricultural Risk Coverage (ARC) benchmarks. According to agricultural economist Robin Reid from Kansas State University, this will result in ARC-County payments for wheat producers in certain areas.
Five counties in Nebraska will be receiving these payments: Rock ($6.87 per acre), Hall ($31.78 per acre), York ($34.57 per acre), Nance ($31.03 per acre), and Seward ($34.04 per acre).
The ARC-County payments are calculated on a per-acre basis and will be applied to 85% of a farm’s wheat acre base. These payments are expected to be issued in October. These payments are designed to help mitigate the financial impacts farmers face due to unexpected yield losses and income shortfalls.
For producers in the affected counties, these payments will provide some financial relief following a challenging growing season. Although the PLC program did not result in payments due to the wheat price staying above the reference price, the ARC-County payments serve as an important form of support for producers who experienced yield setbacks.
These ARC-County payments highlight the importance of agricultural support programs in maintaining the stability of the farming industry, especially during unpredictable weather conditions that can severely affect crop yields.
Photo Credit:gettyimages-ygrek
Categories: Nebraska, Crops, Wheat, Government & Policy