PLC and ARC Payments May Differ If Farm in Multiple Counties

The way ARC or PLC payments are determined may have a positive or negative affect on your payment — depending on if you farm in multiple counties AND where your records are maintained. CliftonAllenLarson Principle and Farm CPA Today blogger Paul Neiffer shares more about the difference in how Farm Service Agency will be determining payments
Neiffer: “The payments are going to be paid where the farmer actually has their records maintained or administered. For example if you have a farmer who farms in Columbia and Walla Walla County in the state in Washington, but all their records are maintained in Walla Walla County — all their payments are going to be based on Walla Walla data. This can be a good thing or a bad thing. The good thing is let’s say that they have some acreage in Columbia County and the payment would be $20 an acre where as and the Walla Walla payment would be $40 an acre; they will actually get $40 not $20. Where it might be a bad thing — let’s say it’s the reverse. Where they had land in Columbia county and land in Walla Walla County but are administrated in Columbia County — in that case they are going to get $20 instead of $40. It may be either in your favor or not be in your favor. It also may be the case that it changes from year to year — because if you get a large payment this year, that may actually reduced your payment next year versus your neighboring county where it may be the opposite.”
Farm CPA Today is one of my favorite informative blogs, if you haven’t yet visited it, go to farmcpatoday.com.