Iowa farmers are set to receive $42.7 million in safety-net payments for the 2018 crop year.
The U.S. Department of Agriculture’s Farm Service Agency in Iowa is processing $42,735,299 in Agriculture Risk Coverage and Price Loss Coverage, two popular safety-net programs for agricultural producers.
ARC provides income support when crop revenue declines below a specified guarantee level. The PLC program pays out when the price for a covered commodity falls below its effective reference price. The programs were reauthorized under the 2018 Farm Bill.
Crops that met payment triggers for farms and covered commodities enrolled in 2018 PLC include wheat, barley, corn, grain sorghum, dry peas, and canola.
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Oats and soybeans did not meet 2018 PLC payment triggers. 2018 PLC payment rates have not been determined for the following covered commodities: chickpeas, sunflower seed, flaxseed, mustard seed, rapeseed, safflower, crambe, sesame seed, seed cotton, long grain rice, medium-grain rice, and temperate Japonica rice.
Producers who had 2018 covered commodities enrolled in ARC at the county level can visit www.fsa.usda.gov/arc-plc for payment rates applicable to their county and each covered commodity.
All 99 of Iowa’s counties have experienced a drop in price or revenues below the benchmark price and will receive payments, the USDA Farm Service Agency of Iowa said in a statement.
“Our safety net programs help provide certainty and stability to Iowa farm families affected by fluctuating market prices,” Amanda De Jong, State Executive Director in Iowa said in a release. “When reviewing payments, it’s important to remember that ARC and PLC payments by county can vary because average county yields will differ.”
The two programs have issued $1.5 billion already. The Farm Service Agency anticipates an additional $1 billion in November after the USDA’s National Agricultural Statistics Service publishes additional commodity prices for the 2018 crop, the USDA said.
Program enrollment for the 2019 crop year is open through March 15, 2020.