Recommendations for Commodity Support Programs (ARC/PLC) 2022 crop year election

The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs were authorized by the 2014 and 2018 Farm Bills. Producers can now make or change elections and enroll for 2022 ARC or PLC, providing future protection against market fluctuations. Enrollment for the annual election period started in October and farmers have until March 15, 2022, to finalize their election decision. According to Paul Mitchell, UW Madison Professor of Ag and Applied Economics and Extension Specialist, the short answer for 2022 is “Enroll in County ARC”.

About Commodity Support Programs:  Information about these commodity programs can be found on the Farm Service Agency website

Agriculture Risk Coverage-County (ARC-CO): The ARC-CO program provides income support tied to historical base acres, not current production, of covered commodities. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.

Price Loss Coverage (PLC): PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity.

Farmers (and those supporting farmers) can find resources and information, including videos and articles by Dr. Paul Mitchell regarding signup for the commodity support programs ARC/PLC, and recommendations for 2022, at the UW Madison Dept of Ag and Applied Economics website