Projected 2020 Price Loss Coverage Benefits

    Corn lodged from wind and hail damage. Photo: Ohio State University

    In USDA’s August update of 2020 PLC Payment Rates, wheat, peanuts, seed cotton, long-grain, and southern medium grain rice are projected to receive PLC payments. The final 2020 marketing year average price for wheat has been announced by FSA.

    However, USDA will continue to update its’ PLC projections for the other commodities mentioned. The final marketing year average prices and PLC payment rates will be determined on August 31 for peanuts, September 30 for seed cotton, and October 29 for both classes of rice.   

    USDA’s Price Loss Coverage (PLC) program is a commodity support program that makes deficiency payments when the marketing year average price for a covered commodity falls below a statutory reference price.  PLC payments are made on a farm’s historic average yields and 85% of commodity-specific base acres.

    The far-right column in the table below provides current projections for 2020 PLC payment rates.  Past year payment rates going back to 2014 are also included.  Increasing commodity prices for the 2020 crop are expected to reduce PLC payments from the previous year for all major row crops.  

    In the case of corn, grain sorghum, and soybeans no PLC payments for the 2020 crop are projected.  Lower payment rates for the 2020 crop are expected for wheat, rice, seed cotton, and peanuts.

    Price Loss Coverage (PLC) Payment Rates for Select Commodities, 2014 – 2020 Projected.  Click Image to Enlarge




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