ARC-CO and PLC Payment Rates for 2020

Brian Mills, Extension Ag Economist
By Brian Mills, Extension Ag Economist and Will Maples, Extension Ag Economist, Mississippi State University October 20, 2021 09:55

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Price Loss Coverage Program Payments

The following contains the projected PLC payment rates for 2020 crop year. Table 1 contains the MYA prices for the 2020/21 crop year from the latest World Agricultural Supply and Demand Estimates (WASDE) report. The WASDE report is a monthly report containing the latest estimates/forecasts of MYA prices, production, imports, and exports for various crops. The MYA price is important in calculating farm program payments for the Price Loss Coverage (PLC) and Agricultural Risk Coverage-County (ARC-CO). The Expected PLC Payment Rate is the higher of (Reference Price minus the Estimated 2020/21 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. These are the finalized MYA prices for all crops except for rice.

Table 1. PLC Payment Rates for 2020 Marketing Year
CommodityMarketing YearDates for the Final 2020/21 MYA1 PriceUnit2020 Reference Price2020/21 MYA Price2020 PLC Payment Rate
CornSep. 1-Aug. 31Sept. 2021bu$3.70$4.53$0.00
SoybeansSep. 1-Aug. 31Sept. 2021bu$8.40$10.80$0.00
Seed cottonAug. 1-Jul. 31Sept. 2021lb$0.3670$0.3393$0.0277
Rice (long grain)Aug. 1-Jul. 31Oct. 2021lb$0.140$0.126$0.014
Rice (med/short grain)Aug. 1-Jul. 31Oct. 2021lb$0.140$0.130$0.010
PeanutsAug. 1-Jul. 31Aug. 2021lb$0.2675$0.2100$0.0575
WheatJun. 1-May 31Aug. 2021bu$5.50$5.05$0.45

 

Agriculture Risk Coverage-County Program Payments

Table 2 contains the ARC-CO payment rates per base acre for corn, cotton, soybeans, and wheat. ARC-CO payments for 2020 are found by taking a given county’s 2020 yield times the 2020 MYA price and comparing that to the county’s Guaranteed Revenue (Olympic average county yields from 2014-2018, multiplied by the Reference price, multiplied by 86% guarantee reduction). If the county’s 2020 revenue is below the Guaranteed Revenue, the payment per base acre is the difference in the two multiplied by the 85% payment reduction factor. Counties in Table 2 are the only counties that will receive an ARC-CO payment for 2020. Counties not listed will not be receiving an ARC-CO payment. The reasoning for only these counties receiving payments is mainly due to higher prices and yield. The counties in Table 2 all had below average yields which resulted in lower revenues that in turn triggered an ARC-CO payment.

Table 2. ARC-CO Payment Rates for Counties in Mississippi for 2020 Marketing Year
ARC-CO Payment Rates $/base acre
CropCountyIrrigatedNon-irrigatedAll
Corn Attala--$40.94
Corn Coahoma$52.58--
Cotton Itawamba--$77.98
Cotton Leake--$78.06
Cotton Lee--$72.92
Cotton Madison--$63.63
Cotton Monroe--$25.70
Cotton Noxubee$77.61$2.74-
Cotton Pontotoc--$26.36
Cotton Sharkey$38.86--
Soybeans Grenada-$27.97-
Soybeans Lowndes--$11.22
Wheat Adams--$27.79
Wheat Amite--$12.93
Wheat Attala--$22.91
Wheat Bolivar--$22.09
Wheat Calhoun--$22.44
Wheat Carroll--$12.85
Wheat Chickasaw--$23.55
Wheat Choctaw--$21.01
Wheat Clay--$25.40
Wheat Coahoma--$25.42
Wheat Copiah--$17.65
Wheat DeSoto--$24.52
Wheat Franklin--$17.22
Wheat Grenada--$22.13
Wheat Hinds--$18.33
Wheat Humphreys--$22.88
Wheat Itawamba--$21.31
Wheat Leake--$21.01
Wheat Lee--$20.42
Wheat Leflore--$7.51
Wheat Lowndes--$9.07
Wheat Madison--$8.47
Wheat Marshall--$18.88
Wheat Monroe--$26.07
Wheat Montgomery--$21.01
Wheat Neshoba--$25.40
Wheat Noxubee--$25.09
Wheat Oktibbeha--$25.40
Wheat Panola--$0.37
Wheat Pontotoc--$19.95
Wheat Prentiss--$21.58
Wheat Quitman$23.04$20.12-
Wheat Rankin--$21.01
Wheat Scott--$21.01
Wheat Sharkey--$23.21
Wheat Smith--$3.44
Wheat Tallahatchie--$22.80
Wheat Tate--$8.24
Wheat Tishomingo--$10.16
Wheat Tunica--$23.11
Wheat Washington--$21.95
Wheat Webster--$21.01
Wheat Wilkinson--$12.93
Wheat Winston--$25.40
Wheat Yazoo--$8.80

 

Any questions on this material can be directed to:

Brian Mills – b.mills@msstate.edu – (662) 686-3238

or

Will Maples – will.maples@msstate.edu – (662) 325-2883

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Brian Mills, Extension Ag Economist
By Brian Mills, Extension Ag Economist and Will Maples, Extension Ag Economist, Mississippi State University October 20, 2021 09:55
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