The expected PLC payments for the 2020 marketing year are listed in Table 1. PLC payments are triggered when the Marketing Year Average Price (MYA Price) is less than a commodities’ effective Reference Price. The 2020/21 MYA Prices for all crops shown are USDA’s projected prices as of February 2021. These prices are subject to change.
The PLC payment rate equals the difference between the Reference Price and the higher of the MYA Price or the Loan Rate.
Of the crops listed in the table below, wheat, peanuts, seed cotton, long-grain rice and medium-grain rice are projected to have a PLC payment for the 2020 marketing year.
As a reminder, the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) payments will have a sequestration percentage applied to the payment rate. In recent years the sequestration reduction has been in the range of 6.2 to 6.6 percent. County Farm Service Agency (FSA) offices should be able to provide more details on payment sequestration percentages.