USDA’s Farm Service Agency released this week the final 2020 Price Loss Coverage (PLC) payment rates for rice.
The 2020 PLC payment rate for long-grain rice is 63 cents per bushel. For southern medium-grain, the payment rate is 40 cents per bushel. Note that budget sequestration is not included in the published payment rates.
These payment rates are multiplied by a farm’s established PLC yield and 85% of the base acres for the commodity.
The PLC program makes a payment when the Marketing Year Average Price for a covered commodity is less than the Reference Price (see the table below). The PLC payment rate equals the difference between the Reference Price and the higher of the Marketing Year Average Price or the National Loan Rate.
|Item||Long-Grain ($/bu.)||Medium-Grain ($/bu.)|
|National Loan Rate||$3.15||$3.15|
|Marketing Year Average Price||$5.67||$5.90|
|Higher of Loan Rate or Marketing Year Average||$5.67||$5.90|
|PLC Payment Rate||$0.63||$0.40|
Agriculture Risk Coverage (ARC) and PLC payments have a cumulative limit of $125,000 per person for all covered commodities, except for peanuts, which has its own $125,000 limit.
For the 2020 crop year, Arkansas producers enrolled 2,079,101 rice base acres in PLC and ARC county (ARC-CO). Nearly all or 99.9% of rice base acres were enrolled in the PLC program option.
Additional information on the ARC and PLC programs is available on FSA’s website here.