PLC And ARC Payments, Along With CFAP-2
Oct 09, 2020
Jim Ward, Director of Risk Management
The Marketing Year Average (MYA) prices are final as of September 30 for the 2019/2020 marketing year.
Corn was set at $3.56, resulting in a $0.14/bu payment for those signed up for PLC. If you chose PLC for grain sorghum, you have a $0.61/bu payment, the difference between a reference price of $3.95 and the MYA price of $3.34. The soybean reference price is $8.40, which is less than the MYA price of $8.57, and means no payment. PLC is paying out $0.92/bu to those with wheat since last month the MYA price was set at $4.58.
PLC payments, made later this month, can be calculated by multiplying the payment rate, times your FSA-approved yield, times 85%, times your base acres.
K-State has also calculated an estimate for the 20/21 wheat price using the 5-year average marketing percentages and futures price for the upcoming year. If the estimate holds true there will be a $0.74/bu payment next year.
ARC-CO so far looks like wheat will pay out around $30/acre +- for most of NE Kansas, SE Nebraska, and the counties surrounding St. Joe. Grain sorghum will also trigger payments in a few of the counties in this region. Irrigated corn might, but dryland corn will not. The same goes for soybeans, with irrigated potentially paying and non-irrigated not. All this information can be found at K-State's AgManager site.
CFAP-2 has been announced. Payments are calculated based on your established Average Production History (APH) through crop insurance, times your FSA certified acres, times the payment rate for the crop. Payment rates are: Corn = $0.23/bu, soybeans = $0.31/bu, sorghum = $0.31/bu, wheat = $0.39/bu. Livestock will be paid on non-breeding animals, cattle = $55/head, swine = $23/head, sheep = $27/head. Payment is based on the highest inventory between 4/16 and 8/31. Dairy will pay $1.20/cwt. There are provisions for those without an APH and for specialty crops.
Total program dollar limits per entity have reset for this plan. CFAP-1 and farm bill payments do not calculate into the $250k limit. Corporations with multiple members can qualify for up to $750k depending on time spent in the farming operation by the other members. Please call your local FSA office and have them send you signup information. You can also click HERE for online signup through the USDA signup portal.
Signup ends on December 11, 2020.