PLC Payment Rates for 2019 and 2020 – As of November 10th, 2020
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This article contains the latest expected Price Loss Coverage (PLC) Program payment rates for the 2019 and 2020 marketing years as of November 10, 2020.
2019 Marketing Year
The expected PLC payments for the 2019 year are listed in Table 1. These payments are based on the estimated Marketing Year Average Price (MYA Price), which is the national average price received by producers over the marketing year. The MYA Prices for all crops shown are the finalized prices. The Expected PLC Payment Rate is the higher of (Reference Price minus the Estimated 2019/20 MYA Price) or (zero). To find the estimated PLC payment per base acre, multiply the Expected PLC Payment Rate by the individual farm’s PLC Yield, then multiply by the 85% payment reduction factor. Of the crops listed, only Soybeans will not have a PLC payment for the 2019 year.
Table 1. Finalized PLC Payment Rates for 2019 Marketing Year - As of November, 2020
| Commodity | Marketing Year | Dates for the Final 2019/20 MYA Price | Unit | 2019 Reference Price | Estimated 2019/20 MYA Price | Expected 2019 PLC Payment Rate |
|---|---|---|---|---|---|---|
| Corn | Sep. 1-Aug. 31 | Sept. 30, 2020 | bu | $3.70 | $3.56 | $0.14 |
| Soybeans | Sep. 1-Aug. 31 | Sept. 30, 2020 | bu | $8.40 | $8.57 | $0.00 |
| Seed Cotton | Aug. 1-Jul. 31 | Sept. 30, 2020 | lb | $0.3670 | $0.3102 | $0.0568 |
| Rice (long grain) | Aug. 1-Jul. 31 | Oct. 30, 2020 | lb | $0.1400 | $0.1200 | $0.02 |
| Rice (med/short grain) | Aug. 1-Jul. 31 | Oct. 30, 2020 | lb | $0.1400 | $0.1160 | $0.024 |
| Peanuts | Aug. 1-Jul. 31 | Aug. 28, 2020 | lb | $0.2675 | $0.2050 | $0.0625 |
| Wheat | Jun. 1-May 31 | Aug. 28, 2020 | bu | $5.50 | $4.58 | $0.92 |
2020 Marketing Year
The expected PLC payments for the 2020 year listed in Table 2. The Estimated 2020/21 MYA Price is based on prices from the November USDA WASDE report and the October Oil Crops Outlook Report. These numbers are subject to change significantly between now and next fall as conditions change. Soybeans and Corn are expected to not have a PLC payment for the 2020 year due to higher estimated prices. For most crops, prices are expected to go up in 2020 compared to 2019, with only Rice and Peanuts estimated to have lower prices. Thus, only Rice and Peanuts are expected to have higher PLC payments in 2020 compared to 2019.
Table 2. Expected PLC Payment Rates for 2020 Marketing Year - As of November, 2020
| Commodity | Marketing Year | Dates for the Final 2020/21 MYA Price | Unit | 2020/21 Reference Price | Estimated 2020/21 MYA Price | Expected 2020 PLC Payment Rate |
|---|---|---|---|---|---|---|
| Corn | Sep. 1-Aug. 31 | Sept. 2021 | bu | $3.70 | $4.00 | $0.00 |
| Soybeans | Sep. 1-Aug. 31 | Sept. 2021 | bu | $8.40 | $10.40 | $0.00 |
| Seed Cotton | Aug. 1-Jul. 31 | Sept. 2021 | lb | $0.3670 | $0.3378 | $0.0292 |
| Rice (long grain) | Aug. 1-Jul. 31 | Oct. 2021 | lb | $0.1400 | $0.1170 | $0.023 |
| Rice (med/short grain) | Aug. 1-Jul. 31 | Oct. 2021 | lb | $0.1400 | $0.1180 | $0.022 |
| Peanuts | Aug. 1-Jul. 31 | Aug. 2021 | lb | $0.2675 | $0.2025 | $0.065 |
| Wheat | Jun. 1-May 31 | Aug. 2021 | bu | $5.50 | $4.70 | $0.80 |
Any questions on this material can be directed to:
Brian Mills – b.mills@msstate.edu – (662) 686-3238
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