The USDA Farm Service Agency (FSA) announced today the 2017 Price Loss Coverage (PLC) payment rates for corn, grain sorghum and soybeans. The Agricultural Act of 2014 (aka 2014 Farm Bill) provides payments for covered commodities enrolled in PLC when the Marketing Year Average price is below the statutory Reference Price.
The PLC Payment Rate is calculated by subtracting the higher of the Loan Rate or the Marketing Year Average price from the Reference Price. The table below provides the 2017 PLC payment rates for corn, sorghum and soybeans.
PLC payments for the 2017 crop are expected to be made in October 2018. Payments made under the PLC program are subject to a payment limitation of $125,000 per person. As a reminder, PLC payments are decoupled from actual production. Payment Yields used for PLC could be either 90% of actual farm yields for the years 2008 through 2012 or 75% of the county average yields for that time period.
Price Loss Coverage payments are also decoupled from actual planted acreage—that is, payments are made on 85% of a crop’s historical “base” acres rather than actual acres planted or harvested.
The complete news release from the Farm Service Agency can be downloaded at this link.
|Dollars Per Bushel|
|National Loan Rate||$1.95||$1.95||$5.00|
|Higher of Loan Rate or MYA Price||$3.36||$3.22||$9.33|
|PLC Payment Rate||$0.34||$0.73||$0.00|