California Ag Network

Tag: Agriculture Risk Coverage

  • USDA Reminds Ag Producers of Approaching Deadlines

    The USDA is reminding ag producers impacted by increased input costs and natural disasters that the deadlines to apply for safety net and disaster assistance programs designed to protect their financial security are coming soon.  USDA’s Farm Service Agency (FSA) wants to remind producers that the Assistance for Specialty Crop Farmers (ASCF) program and the Supplemental Disaster Relief Program (SDRP), both have deadlines in early August. Additionally, thanks to the Working Families Tax Cuts Act, eligible landowners have until the end of August to review and consider base acre increases for the first time since 2002 for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs.

    “Whether it’s disaster assistance, support for specialty crop growers or the first chance in more than two decades to update base acres, I encourage producers not to wait until the last minute,” said FSA Administrator Bill Beam. “These deadlines represent real opportunities for producers to recover from market and weather challenges. Reach out to your local FSA office now and make sure you don’t leave assistance on the table.”

    Agricultural producers are reminded of these important upcoming deadlines:

    • Aug. 7 — Deadline to apply for ASCF
    • Aug. 12, — Deadline to apply for SDRP
    • Aug. 31 —Deadline to review base allocations through ARC/PLC

    Assistance for Specialty Crop Farmers

    ASCF provides payments to specialty crop producers based on reported 2025 planted acres. Pre-filled ASCF applications are available to producers who reported their 2025 crop acreage for eligible specialty crops. Producers with a secure Login.gov account can access and submit their pre-filled application online. Producers can also request their pre-filled application from their local FSA county office. Eligible crops and payment rates can be found at fsa.usda.gov/ascf. The deadline to apply is Aug. 7.

    Supplemental Disaster Relief Program

    SDRP provides more than $16 billion in disaster relief payments to producers who suffered revenue, quality or production losses to crops, trees, bushes, or vines due to qualifying disaster events in calendar years 2023 and 2024. Producers with indemnified losses can apply through SDRP Stage 1 which leverages Federal Crop Insurance or Noninsured Crop Disaster Assistance Program data as the basis for calculating payments. Producers with non-indemnified (including shallow losses), uncovered (uninsured), and quality losses can apply for Stage 2 assistance. Producers can request an application from their local FSA county office. Aug. 12 is the deadline for both Stages 1 and 2. Additional information can be found at fsa.usda.gov/sdrp.

    Agriculture Risk Coverage/Price Loss Coverage

    ARC and PLC are cornerstone commodity safety net programs that provide financial protection to farmers when market prices or revenues decline. Landowners have the opportunity to increase base acres in preparation for enrollment in ARC and PLC beginning with the 2026 and future crop years as authorized by the Working Families Tax Cuts Act. Nationwide, up to 30 million new base acres can be added by eligible farms.

    Eligible landowners should review their Base Allocation Summary, which outlines potential base acre increases. These Base Allocation Summaries can be accessed online at fsa.usda.gov/arc-plc using a Login.gov account. Landowners who do not currently have a Login.gov account are encouraged to contact their local FSA county office to obtain their Base Allocation Summary and review and take any necessary action by Aug. 31.   

    County Committees

    Additionally, Aug. 3 is the last day to submit nomination forms for eligible candidates to serve on their local FSA county committees. County committees are a critical component of the day-to-day operations of FSA and allow grassroots input and local administration of federal farm programs. Elections occur each year in certain Local Administrative Areas (LAA). LAAs are elective areas for FSA county committees in a single county or multi-county jurisdiction. Ballots will be mailed to eligible voters in November. Learn more at fsa.usda.gov/coc.

    More Information

    For more information, producers can contact their local FSA office. Producers can also book an appointment with local FSA farm program and farm loan staff using FSA’s new online scheduling system.   

  • Farmers Can Now Make 2023 Crop Year Elections, Enroll in Ag Risk and Price Loss Coverage Programs

    Agricultural producers can now change election and enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage programs for the 2023 crop year, two key safety net programs offered by the U.S. Department of Agriculture (USDA). Signup began Monday, and producers have until March 15, 2023, to enroll in these two programs. Additionally, USDA’s Farm Service Agency (FSA) has started issuing payments totaling more than $255 million to producers with 2021 crops that have triggered payments through ARC or PLC.

    “It’s that time of year for produces to consider all of their risk management options, including safety-net coverage elections through Agriculture Risk Coverage and Price Loss Coverage,” said FSA Administrator Zach Ducheneaux. “We recognize that market prices have generally been very good, but if the ongoing COVID-19 pandemic, frequent catastrophic weather events and the Ukraine war have taught us anything, it’s that we must prepare for the unexpected. It’s through programs like ARC and PLC that FSA can provide producers the economic support and security they need to manage market volatility and disasters.”

    2023 Elections and Enrollment

    Producers can elect coverage and enroll in ARC-County (ARC-CO) or PLC, which provide crop-by-crop protection, or ARC-Individual (ARC-IC), which protects the entire farm. Although election changes for 2023 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm and makes an election change for 2023, they must sign a new contract.

    If producers do not submit their election by the March 15, 2023 deadline, their election remains the same as their 2022 election for crops on the farm.  Farm owners cannot enroll in either program unless they have a share interest in the farm.

    Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium and short grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.

    Web-Based Decision Tools

    In partnership with USDA, the University of Illinois and Texas A&M University offer web-based decision tools to assist producers in making informed, educated decisions using crop data specific to their respective farming operations. Tools include: 

    • Gardner-farmdoc Payment Calculator, a tool available through the University of Illinois allows producers to estimate payments for farms and counties for ARC-CO and PLC.  
    • ARC and PLC Decision Tool, a tool available through Texas A&M that allows producers to obtain basic information regarding the decision and factors that should be taken into consideration such as future commodity prices and historic yields to estimate payments for 2022.   

     2021 Payments and Contracts

    ARC and PLC payments for a given crop year are paid out the following fall to allow actual county yields and the Market Year Average prices to be finalized. This month, FSA processed payments to producers enrolled in 2021 ARC-CO, ARC-IC and PLC for covered commodities that triggered for the crop year.

    For ARC-CO, producers can view the 2021 ARC-CO Benchmark Yields and Revenues online database, for payment rates applicable to their county and each covered commodity. For PLC, payments have triggered for rapeseed and peanuts. 

    For ARC-IC, producers should contact their local FSA office for additional information pertaining to 2021 payment information, which relies on producer-specific yields for the crop and farm to determine benchmark yields and actual year yields when calculating revenues.  
     
    By the Numbers  
    In 2021, producers signed nearly 1.8 million ARC or PLC contracts, and 251 million out of 273 million base acres were enrolled in the programs.  For the 2022 crop year signed contracts surpassed 1.8 million, to be paid in the fall of 2023, if a payment triggers. 
    Since ARC and PLC were first authorized by the 2014 Farm Bill and reauthorized by the 2018 Farm Bill, these safety-net programs have paid out more than $34.9 billion to producers of covered commodities.   

    Crop Insurance Considerations

    ARC and PLC are part of a broader safety net provided by USDA, which also includes crop insurance and marketing assistance loans.

    Producers are reminded that ARC and PLC elections and enrollments can impact eligibility for some crop insurance products.

    Producers on farms with a PLC election have the option of purchasing Supplemental Coverage Option (SCO) through their Approved Insurance Provider; however, producers on farms where ARC is the election are ineligible for SCO on their planted acres for that crop on that farm.

    Unlike SCO, the Enhanced Coverage Option (ECO) is unaffected by an ARC election.  Producers may add ECO regardless of the farm program election.

    Upland cotton farmers who choose to enroll seed cotton base acres in ARC or PLC are ineligible for the stacked income protection plan (STAX) on their planted cotton acres for that farm.

    More Information

    For more information on ARC and PLC, visit the ARC and PLC webpage or contact your local USDA Service Center.

  • June 30 Last Day to Complete Enrollment for 2020 Agriculture Risk Coverage, Price Loss Coverage Programs

    Agricultural producers who have not yet enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for 2020 must do so by June 30. Although program elections for the 2020 crop year remain the same as elections made for 2019, all producers need to contact their local USDA Farm Service Agency (FSA) office to sign a 2020 enrollment contract.

    “The Agriculture Risk Coverage and Price Loss Coverage programs are critical safety-net programs for farmers, helping producers weather market distortions resulting from natural disasters, trade disruptions and, this year, a pandemic,” said FSA Administrator Richard Fordyce. “Contact your FSA county office today to complete enrollment before June 30. This can be done in concert with filing your acreage report and applying for other FSA programs.”

    To date, more than 1.4 million ARC and PLC contracts have been signed for the 2020 crop year. This represents 89 percent of expected enrollment. FSA will send reminder postcards to producers who, according to agency records, have not yet submitted signed contracts for ARC or PLC for the 2020 crop year.

    Producers who do not complete enrollment by close of business local time on Tuesday, June 30 will not be enrolled in ARC or PLC for the 2020 crop year and will be ineligible to receive a payment should one trigger for an eligible crop.

    ARC and PLC contracts can be mailed or emailed to producers for signature depending on producer preference. Signed contracts can be mailed or emailed back to FSA or, arrangements can be made in advance with FSA to drop off signed contracts at the FSA county office – call ahead for local drop off and other options available for submitting signed contracts electronically.

    Producers are eligible to enroll on farms with base acres for the following commodities: barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium- and short-grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.

    More Information

    For more information on ARC and PLC including web-based decision tools, visit farmers.gov/arc-plc.

    USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

    Visit offices.usda.gov to find location and contact information for the nearest FSA county office.