The USDA has published Price Loss Coverage (PLC) farm program payment rates for the 2017 crop year for all covered commodities with the exception of long and medium-grain rice. See Table 1 below.
The marketing year average price for rice, by class, will be finalized at the end of October. Currently, forecasted marketing year prices for both long and medium grain rice remain below the $14.00 per cwt reference price. The September 27th forecasted prices for long and medium grain rice are $11.70 and $12.10 per cwt, respectively.
If these prices remain firm as the final 2017 prices, PLC payment rates for long and medium grain rice would be $2.30 and $1.90 per cwt, respectively.
PLC payments are a function of the individual farm’s PLC program yield multiplied by the PLC payment rate. Payments are decoupled (with exception to plantings on generic base) and made on 85% of the farm’s base acres for each enrolled covered commodity and are subject to a 6.9% sequestration rate.