Agricultural producers face approaching deadline
The U.S. Department of Agriculture (USDA) is reminding agricultural producers to enroll in its key commodity safety net programs, the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) for the 2024 crop year, with a deadline of March 15 rapidly approaching. These programs, essential for farmers facing significant drops in prices or revenues, are crucial in providing income support through the USDA’S Farm Service Agency (FSA).
With the enrollment period closing soon, Ohio reports a 59% enrollment rate, translating to just over 58,000 of the anticipated 98,000 contracts.
The ARC and PLC programs offer protection against market downturns at no cost to producers, a critical safety net in the unpredictable realm of agricultural production.
Details were provided in a news release from the Farm Service Agency.
John Patterson, the state executive director for FSA in Ohio, emphasized the importance of these programs in offering risk protection against market declines. He encouraged producers, especially those awaiting planting decisions or consulting with advisors on potential impacts of effective reference price changes, to contact their local FSA county office to schedule an appointment before the deadline.
The programs allow for coverage election and enrollment on a crop-bycrop basis through Arccounty or PLC, or for the entire farm through Arc-individual. While changes to the 2024 elections are optional, annual enrollment with a signed contract is mandatory. Failing to revise elections or sign contracts by March 15 will result in producers retaining their 2023 elections for eligible commodities and potentially missing out on payments if not enrolled.
Eligibility for enrollment extends to farms with base acres in a wide range of commodities, including barley, corn, soybeans, and wheat among others. The USDA and various universities also offer web-based tools to assist producers in making informed decisions tailored to their operations.
Additionally, participation in these programs may influence eligibility for certain USDA Risk Management Agency (RMA) crop insurance products. Producers enrolling in PLC can opt for the Supplemental Coverage Option (SCO), while those choosing ARC are ineligible for SCO on their planted acres. However, the Enhanced Coverage Option (ECO) remains available regardless of farm program elections.
For upland cotton farmers, enrolling seed cotton base acres in ARC or PLC excludes them from the stacked income protection plan (STAX) for planted cotton acres.
Producers seeking more information or looking to sign up for the ARC and PLC programs should reach out to their local USDA FSA County Office as the March 15 deadline nears.