ARC and PLC Update

Agriculture risk coverage and price loss coverage programs offered by the Agriculture Department are now over a decade in as key farm bill farm safety net programs for crop growers. Speaker 2: Price loss coverage is really more focused on what did the price do during that marketing year based on what we thought it was going to be? It's a safety net that helps protect producers if there is a decline in prices. Ark agricultural risk coverage really combines a little bit of production. So yield from a county level and price. Speaker 1: Agriculture. Under Secretary for Farm Production and Conservation Richard Fordyce reminds producers they could annually elect which program they select for specific crop acreage to be covered. ARC County, or PLC provides crop by crop protection, while ARC individual protects the whole farm. Speaker 2: We do see that where producers that are growing multiple crops will enroll some crops in one program, some crops in another program. Based on what the analysis is, that does happen a lot. And then you might have years where it's just pretty evident that you would put your crops in one program. Speaker 1: October annually is the month where ARC and PLC payments are issued for the previous crop year. And in the case of farm safety net payments for crop year 2025, it was historical in that. Speaker 2: The gross payments are going to be around $13.8 billion. Speaker 1: In addition to that being a record setting amount. Speaker 2: In comparison, last year, Ark and PLC payments that went out in October of 2025 were kind of in that $1.9 billion range.