PLC, ARC, or STAX?
While the deadline for enrollment isn’t until March 15, cotton growers can now start enrolling in ARC, PLC or the STAX program for the 2023 crop year.
Dr. Jody Campiche, vice president of economics and policy analysis for the National Cotton Council…
“Given where cotton seed prices are today and the fact that we may not have a large crop next year due prices of competing commodities, cotton seed prices may be too high to trigger a PLC payment. With higher cotton seed prices, the lint price needs to be lower to trigger a PLC payment. For STAX to trigger, the harvest price would need to be at least 10% lower than the projected price unless the county has a yield loss. For 2023, with December futures in the high 70s, the decision is not as easy.”
This, she says, is where some review is going to need to be done…
“If futures prices are high in January and February, resulting in a higher insurance projected price, this could change the STAX/PLC decision for 2023.”
If you’ve got questions or you want to play through some of those scenarios, contact your local FSA office. Again Dr. Jody Campiche with the National Cotton Council.