Overview
The Agriculture Improvement Act of 2018 (2018 Farm
Bill) reauthorized the ARC and PLC programs with
modifications for the 2019 through 2023 crop years.
The ARC Program is an income support program that
provides payments when actual crop revenue declines
below a specified guarantee level. The PLC Program
provides income support payments when the effective
price for a covered commodity falls below its effective
reference price. There are 22 covered commodities:
wheat, oats, barley, corn, grain sorghum, long grain
rice, medium/short grain rice, temperate japonica rice,
seed cotton, dry peas, lentils, large and small chickpeas
soybeans, peanuts, sunflower seed, canola, flaxseed,
mustard seed, rapeseed, safflower, crambe, and sesame
seed.
How It Works
Reference Prices
Published Reference Prices for all covered
commodities are provided in the table below. Under
the 2018 Farm Bill amendments, effective reference
prices will be calculated to allow upward fluctuation of
reference prices in time periods when historic price
averages are higher than the established reference
price for the covered commodity.
1
FACT SHEET
August 2019
Farm Service Agency
Agriculture Risk Coverage (ARC)
& Price Loss Coverage (PLC)
1/
Barley price is based on the price of “all barley.”
Previously the price was based on the “feed barley”
price.
2/
Seed cotton price is a weighted average of upland
cotton and cottonseed prices. Marketing year for upland
cotton is August 1 to July 31. Marketing year for cotton-
seed is August 1 to February 28.
Crop
Barley
1/
Chickpeas, Large
(Garbanzo bean, Kabuli)
Chickpeas, Small
(Garbanzo bean, Desi)
Corn
Dry Peas
Grain Sorghum
Lentils
Oats
Canola
Crambe
Flaxseed
Mustard
Rapeseed
Safflower
Sesame Seed
Sunflower
Peanuts
Rice, Long Grain
Rice, Medium/Short Grain
Rice, Temperate Japonica
Soybeans
Wheat
Seed Cotton
2/
$4.95 per bu.
$21.54 per cwt
$19.04 per cwt
$3.70 per bu
$11.00 per cwt
$3.95 per bu
$19.97 per cwt
$2.40 per bu
$20.15 per cwt.
$20.15 per cwt
$11.28 per bu
$20.15 per cwt
$20.15 per cwt
$20.15 per cwt
$20.15 per cwt
$20.15 per cwt
$535.00 per ton
$14.00 per cwt
$14.00 per cwt
$
17.30 per cwt
$8.40 per bu
$5.50 per bu
$0.367 per lb
$2.50 per bu
$14.00 per cwt
$10.00 per cwt
$2.20 per bu
$6.15 per cwt
$2.20 per bu
$13.00 per cwt
$2.00 per bu
$10.09 per cwt
$10.09 per cwt
$10.09 per bu
$10.09 per cwt
$10.09 per cwt
$10.09 per cwt
$10.09 per cwt
$10.09 per cwt
$355.00 per ton
$7.00 per cwt
$7.00 per cwt
$7.00 per cwt
$6.20 per bu
$3.38 per bu
.45-.52 per lb
Reference
Price
National
Loan
Rate
Eligibility
Base acres on farms where all cropland acres have
been planted entirely to grass or pasture; including
cropland that was idle or fallow, from January 1, 2009
through December 31, 2017, will be maintained, but
no ARC or PLC payments will be issued for those base
acres from 2019 through 2023. Reconstitutions are not
permitted to void or change this treatment of base
acres.
Unassigned base acres resulting from the 2018
allocation of generic base acres are ineligible for
payment. Payment acres under ARC-CO and PLC are
equal to 85% of the specific covered commodity base
acres. For ARC-IC, payment acres are 65% of the
farm’s total covered commodity base acres. A producer
is not eligible to receive ARCPLC payments if the sum
of base acres on ALL farms in which the producer has
a share is 10 acres or less. This 10-acre rule will not
apply to a socially disadvantaged, beginning, veteran,
or limited resource farmer or rancher.
Yield Update
Owners will have a 1-time opportunity in 2020 to
update PLC yields of covered commodity base crops
on their farm, regardless of program election. The
updated yield will be equal to 90% of the producer’s
average yield per planted acre in crop years
2013-2017, subject to the ratio obtained by dividing
the 2008-2012 average national yield by the
2013-2017 average national yield for the covered
commodity. If the reported yield in any year is less
than 75% of the 2013-2017 average county yield, then
the yield will be substituted with 75% of the county
average yield.
2
ARC-PLC PROGRAM - AUGUST 2019
Election
All farm producers with interest in the cropland must
make a unanimous election in 2019 of either ARC-CO
or PLC on a crop-by-crop basis; or ARC-IC for all
covered commodity base acres on a farm. This election
will apply to the farm for 2019 through 2023. Program
election changes are permitted in crop years 2021,
2022 and 2023. Failure to make a valid election in
2019 will result in a continuation of the program
elected for 2014 through 2018 crop years for all
covered commodities with base acres on the farm; and
2019 payments for those unelected covered
commodities are prohibited.
Enrollment
To be eligible for payments, producers must annually
enroll their respective share interest of covered
commodity base acres. For 2019 and subsequent years,
enrollment will occur on a covered
commodity-by-covered commodity base acre crop
basis. Enrolling less than 100% of a covered
commodity’s base acres on a farm is not allowed.
Program election and enrollment for program year
2019 will begin September 3, 2019, and will continue
to March 15, 2020. Enrollment for program year 2020,
following a valid election being performed on the farm
for 2019, will begin October 7, 2019, and will continue
to June 30, 2020. Enrollment dates for subsequent
years will be as determined and announced by FSA.
Enrollment for program year 2020 will always follow
the valid election (or default election) for 2019. A
valid election being made or changed after a 2020
enrollment will invalidate the 2020 enrollment and
require 2020 producers to reenroll the farm.
RMA’s SCO and STAX
Election and enrollment can impact eligibility for
some forms of crop insurance. Producers who elect
and enroll in PLC also have the option of purchasing
Supplemental Coverage Option (SCO) which has been
referred to as “shallow loss coverage” through the
USDA Risk Management Agency (RMA). Producers
of covered commodities who elect ARC are ineligible
for SCO on their planted acres. Producers of upland
cotton who choose to enroll seed cotton base acres in
ARC or PLC are ineligible for the stacked income
protection plan (STAX) on their planted cotton acres.
To be eligible for STAX coverage, producers must not
enroll their seed cotton base acres into the ARCPLC
program. Because enrollment is now completed on a
commodity-by-commodity basis, producers can
choose to enroll all base acres, with the exception of
cotton, if they wish to purchase STAX coverage. Those
producers who do enroll in ARCPLC for seed cotton
will have their STAX eligibility determined based on
that enrollment.
Payment Schedule
Payments for PLC, ARC-CO and ARC-IC, if triggered,
will be issued after October 1 of the year following the
program year.
Price Loss Coverage (PLC)
PLC program payments are issued when the effective
price of a covered commodity is less than the
respective effective reference price for that
commodity. The effective price equals the higher of
the national market year average price (MYA) or the
national average loan rate for the covered commodity.
The effective reference price is the lesser of 115% of
the reference price or an amount equal to the greater of
the reference price or 85% of the average of MYA
prices from the 5 preceding years, excluding the
highest and lowest price.
This new method of calculating the PLC payment rates
will allow the effective reference price to be greater
than the statutory reference price if the historic average
of MYA prices is greater than the statutory reference
price.
PLC payments are not dependent upon the planting of
a covered commodity or planting of the applicable
base crop on the farm. PLC payments, if triggered, will
be paid on 85% of the farm’s base acres of each
covered commodity with a PLC election where the
farm has been enrolled. Payment will be issued after
the end of the marketing year of the covered
commodity, but not before October 1 of the year
following the program year.
County Agriculture Risk Coverage
(ARC-CO)
ARC-CO program payments are triggered when the
actual county crop revenue of a covered commodity is
less than the ARC-CO guarantee for the crop. The
actual county revenue and the revenue guarantee are
based on county level yield data for the physical
location of the base acres on the farm and tract.
ARC-CO payments are not dependent upon the
planting of a covered commodity or planting of the
applicable base crop on the farm.
The ARC-CO benchmark revenue is the 5-year
Olympic average MYA price multiplied by the 5-year
Olympic average county yield. Benchmark yields and
MYA’s will be calculated using the 5 years preceding
the year prior to the program year. The ARC-CO
guarantee is determined by multiplying the ARC-CO
benchmark revenue by 86%.
The ARC-CO actual crop revenue is determined by
multiplying the applicable actual county yield by the
MYA price for the program year.
County yields for the benchmark and actual revenues
will be based on the physical location and historical
irrigated percentage of base acres on the farm and
tract. If a farm has base acres physically located in
more than one county or has a historical irrigated
percentage for the covered commodity, the benchmark
and actual crop revenues will be weighted and
summarized based on those aspects to the farm level.
The ARC-CO payment is equal to 85% of the base
acres of the covered commodity multiplied by the
difference between the county guarantee and the actual
county crop revenue for the covered commodity.
Payment rates may not exceed 10% of the ARC-CO
benchmark revenue.
Individual Agriculture Risk Coverage
(ARC-IC)
ARC-IC program payments are issued when the actual
individual crop revenue for all covered commodities
planted on the ARC-IC farm is less than the ARC-IC
guarantee for those covered commodities. ARC-IC
uses producer’s certified yields, rather than county
level yields. ARC-IC payments are dependent upon the
planting of covered commodities on the farm. A
producer’s ARC-IC farm is defined as the sum of the
producer’s interest in all ARC-IC enrolled farms in the
state.
The farm’s ARC-IC guarantee equals 86% of the
ARC-IC farm’s weighted benchmark revenue. The
ARC-IC benchmark revenue is the 5-year Olympic
average revenue, which is the MYA price multiplied
by the individual’s certified yield for each year in the
benchmark period. A benchmark revenue is calculated
for each planted covered commodity on the ARC-IC
farm in the current year, weighed and summed across
all covered commodities on the farm. The yields and
MYA prices used in the benchmark calculation will be
the 5 years preceding the year prior to the program
year.
The ARC-IC actual crop revenue is determined by
multiplying the MYA price by the individual’s certified
yield, weighted and summed across all covered
commodities planted on the farm in the current year.
The ARC-IC payment is equal to 65% of the total base
acres on the farm, multiplied by the difference between
the calculated individual guarantee revenue and the
actual individual crop revenue summed across all
covered commodities planted on the farm.
ARC-IC payment rates may not exceed 10% of the
individual weighted benchmark revenue.
More Information
For more information on FSA programs, eligibility and
related information, visit fsa.usda.gov.
Find your Local USDA Service Center
To locate your local FSA office, visit
farmers.gov/service-locator.
Eligibility
Base acres on farms where all cropland acres have
been planted entirely to grass or pasture; including
cropland that was idle or fallow, from January 1, 2009
through December 31, 2017, will be maintained, but
no ARC or PLC payments will be issued for those base
acres from 2019 through 2023. Reconstitutions are not
permitted to void or change this treatment of base
acres.
Unassigned base acres resulting from the 2018
allocation of generic base acres are ineligible for
payment. Payment acres under ARC-CO and PLC are
equal to 85% of the specific covered commodity base
acres. For ARC-IC, payment acres are 65% of the
farm’s total covered commodity base acres. A producer
is not eligible to receive ARCPLC payments if the sum
of base acres on ALL farms in which the producer has
a share is 10 acres or less. This 10-acre rule will not
apply to a socially disadvantaged, beginning, veteran,
or limited resource farmer or rancher.
Yield Update
Owners will have a 1-time opportunity in 2020 to
update PLC yields of covered commodity base crops
on their farm, regardless of program election. The
updated yield will be equal to 90% of the producer’s
average yield per planted acre in crop years
2013-2017, subject to the ratio obtained by dividing
the 2008-2012 average national yield by the
2013-2017 average national yield for the covered
commodity. If the reported yield in any year is less
than 75% of the 2013-2017 average county yield, then
the yield will be substituted with 75% of the county
average yield.
3
ARC-PLC PROGRAM - AUGUST 2019
Election
All farm producers with interest in the cropland must
make a unanimous election in 2019 of either ARC-CO
or PLC on a crop-by-crop basis; or ARC-IC for all
covered commodity base acres on a farm. This election
will apply to the farm for 2019 through 2023. Program
election changes are permitted in crop years 2021,
2022 and 2023. Failure to make a valid election in
2019 will result in a continuation of the program
elected for 2014 through 2018 crop years for all
covered commodities with base acres on the farm; and
2019 payments for those unelected covered
commodities are prohibited.
Enrollment
To be eligible for payments, producers must annually
enroll their respective share interest of covered
commodity base acres. For 2019 and subsequent years,
enrollment will occur on a covered
commodity-by-covered commodity base acre crop
basis. Enrolling less than 100% of a covered
commodity’s base acres on a farm is not allowed.
Program election and enrollment for program year
2019 will begin September 3, 2019, and will continue
to March 15, 2020. Enrollment for program year 2020,
following a valid election being performed on the farm
for 2019, will begin October 7, 2019, and will continue
to June 30, 2020. Enrollment dates for subsequent
years will be as determined and announced by FSA.
Enrollment for program year 2020 will always follow
the valid election (or default election) for 2019. A
valid election being made or changed after a 2020
enrollment will invalidate the 2020 enrollment and
require 2020 producers to reenroll the farm.
RMA’s SCO and STAX
Election and enrollment can impact eligibility for
some forms of crop insurance. Producers who elect
and enroll in PLC also have the option of purchasing
Supplemental Coverage Option (SCO) which has been
referred to as “shallow loss coverage” through the
USDA Risk Management Agency (RMA). Producers
of covered commodities who elect ARC are ineligible
for SCO on their planted acres. Producers of upland
cotton who choose to enroll seed cotton base acres in
ARC or PLC are ineligible for the stacked income
protection plan (STAX) on their planted cotton acres.
To be eligible for STAX coverage, producers must not
enroll their seed cotton base acres into the ARCPLC
program. Because enrollment is now completed on a
commodity-by-commodity basis, producers can
choose to enroll all base acres, with the exception of
cotton, if they wish to purchase STAX coverage. Those
producers who do enroll in ARCPLC for seed cotton
will have their STAX eligibility determined based on
that enrollment.
Payment Schedule
Payments for PLC, ARC-CO and ARC-IC, if triggered,
will be issued after October 1 of the year following the
program year.
Program
Year
Payments Issued
After
2019
2020
2021
2022
2023
October 1, 2020
October 1, 2021
October 1, 2022
October 1, 2023
October 1, 2024
Price Loss Coverage (PLC)
PLC program payments are issued when the effective
price of a covered commodity is less than the
respective effective reference price for that
commodity. The effective price equals the higher of
the national market year average price (MYA) or the
national average loan rate for the covered commodity.
The effective reference price is the lesser of 115% of
the reference price or an amount equal to the greater of
the reference price or 85% of the average of MYA
prices from the 5 preceding years, excluding the
highest and lowest price.
This new method of calculating the PLC payment rates
will allow the effective reference price to be greater
than the statutory reference price if the historic average
of MYA prices is greater than the statutory reference
price.
PLC payments are not dependent upon the planting of
a covered commodity or planting of the applicable
base crop on the farm. PLC payments, if triggered, will
be paid on 85% of the farm’s base acres of each
covered commodity with a PLC election where the
farm has been enrolled. Payment will be issued after
the end of the marketing year of the covered
commodity, but not before October 1 of the year
following the program year.
County Agriculture Risk Coverage
(ARC-CO)
ARC-CO program payments are triggered when the
actual county crop revenue of a covered commodity is
less than the ARC-CO guarantee for the crop. The
actual county revenue and the revenue guarantee are
based on county level yield data for the physical
location of the base acres on the farm and tract.
ARC-CO payments are not dependent upon the
planting of a covered commodity or planting of the
applicable base crop on the farm.
The ARC-CO benchmark revenue is the 5-year
Olympic average MYA price multiplied by the 5-year
Olympic average county yield. Benchmark yields and
MYA’s will be calculated using the 5 years preceding
the year prior to the program year. The ARC-CO
guarantee is determined by multiplying the ARC-CO
benchmark revenue by 86%.
The ARC-CO actual crop revenue is determined by
multiplying the applicable actual county yield by the
MYA price for the program year.
County yields for the benchmark and actual revenues
will be based on the physical location and historical
irrigated percentage of base acres on the farm and
tract. If a farm has base acres physically located in
more than one county or has a historical irrigated
percentage for the covered commodity, the benchmark
and actual crop revenues will be weighted and
summarized based on those aspects to the farm level.
The ARC-CO payment is equal to 85% of the base
acres of the covered commodity multiplied by the
difference between the county guarantee and the actual
county crop revenue for the covered commodity.
Payment rates may not exceed 10% of the ARC-CO
benchmark revenue.
Individual Agriculture Risk Coverage
(ARC-IC)
ARC-IC program payments are issued when the actual
individual crop revenue for all covered commodities
planted on the ARC-IC farm is less than the ARC-IC
guarantee for those covered commodities. ARC-IC
uses producer’s certified yields, rather than county
level yields. ARC-IC payments are dependent upon the
planting of covered commodities on the farm. A
producer’s ARC-IC farm is defined as the sum of the
producer’s interest in all ARC-IC enrolled farms in the
state.
The farm’s ARC-IC guarantee equals 86% of the
ARC-IC farm’s weighted benchmark revenue. The
ARC-IC benchmark revenue is the 5-year Olympic
average revenue, which is the MYA price multiplied
by the individual’s certified yield for each year in the
benchmark period. A benchmark revenue is calculated
for each planted covered commodity on the ARC-IC
farm in the current year, weighed and summed across
all covered commodities on the farm. The yields and
MYA prices used in the benchmark calculation will be
the 5 years preceding the year prior to the program
year.
The ARC-IC actual crop revenue is determined by
multiplying the MYA price by the individual’s certified
yield, weighted and summed across all covered
commodities planted on the farm in the current year.
The ARC-IC payment is equal to 65% of the total base
acres on the farm, multiplied by the difference between
the calculated individual guarantee revenue and the
actual individual crop revenue summed across all
covered commodities planted on the farm.
ARC-IC payment rates may not exceed 10% of the
individual weighted benchmark revenue.
More Information
For more information on FSA programs, eligibility and
related information, visit fsa.usda.gov.
Find your Local USDA Service Center
To locate your local FSA office, visit
farmers.gov/service-locator.
Eligibility
Base acres on farms where all cropland acres have
been planted entirely to grass or pasture; including
cropland that was idle or fallow, from January 1, 2009
through December 31, 2017, will be maintained, but
no ARC or PLC payments will be issued for those base
acres from 2019 through 2023. Reconstitutions are not
permitted to void or change this treatment of base
acres.
Unassigned base acres resulting from the 2018
allocation of generic base acres are ineligible for
payment. Payment acres under ARC-CO and PLC are
equal to 85% of the specific covered commodity base
acres. For ARC-IC, payment acres are 65% of the
farm’s total covered commodity base acres. A producer
is not eligible to receive ARCPLC payments if the sum
of base acres on ALL farms in which the producer has
a share is 10 acres or less. This 10-acre rule will not
apply to a socially disadvantaged, beginning, veteran,
or limited resource farmer or rancher.
Yield Update
Owners will have a 1-time opportunity in 2020 to
update PLC yields of covered commodity base crops
on their farm, regardless of program election. The
updated yield will be equal to 90% of the producer’s
average yield per planted acre in crop years
2013-2017, subject to the ratio obtained by dividing
the 2008-2012 average national yield by the
2013-2017 average national yield for the covered
commodity. If the reported yield in any year is less
than 75% of the 2013-2017 average county yield, then
the yield will be substituted with 75% of the county
average yield.
4
ARC-PLC PROGRAM - AUGUST 2019
USDA is an equal opportunity provider, employer, and lender.
Election
All farm producers with interest in the cropland must
make a unanimous election in 2019 of either ARC-CO
or PLC on a crop-by-crop basis; or ARC-IC for all
covered commodity base acres on a farm. This election
will apply to the farm for 2019 through 2023. Program
election changes are permitted in crop years 2021,
2022 and 2023. Failure to make a valid election in
2019 will result in a continuation of the program
elected for 2014 through 2018 crop years for all
covered commodities with base acres on the farm; and
2019 payments for those unelected covered
commodities are prohibited.
Enrollment
To be eligible for payments, producers must annually
enroll their respective share interest of covered
commodity base acres. For 2019 and subsequent years,
enrollment will occur on a covered
commodity-by-covered commodity base acre crop
basis. Enrolling less than 100% of a covered
commodity’s base acres on a farm is not allowed.
Program election and enrollment for program year
2019 will begin September 3, 2019, and will continue
to March 15, 2020. Enrollment for program year 2020,
following a valid election being performed on the farm
for 2019, will begin October 7, 2019, and will continue
to June 30, 2020. Enrollment dates for subsequent
years will be as determined and announced by FSA.
Enrollment for program year 2020 will always follow
the valid election (or default election) for 2019. A
valid election being made or changed after a 2020
enrollment will invalidate the 2020 enrollment and
require 2020 producers to reenroll the farm.
RMA’s SCO and STAX
Election and enrollment can impact eligibility for
some forms of crop insurance. Producers who elect
and enroll in PLC also have the option of purchasing
Supplemental Coverage Option (SCO) which has been
referred to as “shallow loss coverage” through the
USDA Risk Management Agency (RMA). Producers
of covered commodities who elect ARC are ineligible
for SCO on their planted acres. Producers of upland
cotton who choose to enroll seed cotton base acres in
ARC or PLC are ineligible for the stacked income
protection plan (STAX) on their planted cotton acres.
To be eligible for STAX coverage, producers must not
enroll their seed cotton base acres into the ARCPLC
program. Because enrollment is now completed on a
commodity-by-commodity basis, producers can
choose to enroll all base acres, with the exception of
cotton, if they wish to purchase STAX coverage. Those
producers who do enroll in ARCPLC for seed cotton
will have their STAX eligibility determined based on
that enrollment.
Payment Schedule
Payments for PLC, ARC-CO and ARC-IC, if triggered,
will be issued after October 1 of the year following the
program year.
Price Loss Coverage (PLC)
PLC program payments are issued when the effective
price of a covered commodity is less than the
respective effective reference price for that
commodity. The effective price equals the higher of
the national market year average price (MYA) or the
national average loan rate for the covered commodity.
The effective reference price is the lesser of 115% of
the reference price or an amount equal to the greater of
the reference price or 85% of the average of MYA
prices from the 5 preceding years, excluding the
highest and lowest price.
This new method of calculating the PLC payment rates
will allow the effective reference price to be greater
than the statutory reference price if the historic average
of MYA prices is greater than the statutory reference
price.
PLC payments are not dependent upon the planting of
a covered commodity or planting of the applicable
base crop on the farm. PLC payments, if triggered, will
be paid on 85% of the farm’s base acres of each
covered commodity with a PLC election where the
farm has been enrolled. Payment will be issued after
the end of the marketing year of the covered
commodity, but not before October 1 of the year
following the program year.
County Agriculture Risk Coverage
(ARC-CO)
ARC-CO program payments are triggered when the
actual county crop revenue of a covered commodity is
less than the ARC-CO guarantee for the crop. The
actual county revenue and the revenue guarantee are
based on county level yield data for the physical
location of the base acres on the farm and tract.
ARC-CO payments are not dependent upon the
planting of a covered commodity or planting of the
applicable base crop on the farm.
The ARC-CO benchmark revenue is the 5-year
Olympic average MYA price multiplied by the 5-year
Olympic average county yield. Benchmark yields and
MYA’s will be calculated using the 5 years preceding
the year prior to the program year. The ARC-CO
guarantee is determined by multiplying the ARC-CO
benchmark revenue by 86%.
The ARC-CO actual crop revenue is determined by
multiplying the applicable actual county yield by the
MYA price for the program year.
County yields for the benchmark and actual revenues
will be based on the physical location and historical
irrigated percentage of base acres on the farm and
tract. If a farm has base acres physically located in
more than one county or has a historical irrigated
percentage for the covered commodity, the benchmark
and actual crop revenues will be weighted and
summarized based on those aspects to the farm level.
The ARC-CO payment is equal to 85% of the base
acres of the covered commodity multiplied by the
difference between the county guarantee and the actual
county crop revenue for the covered commodity.
Payment rates may not exceed 10% of the ARC-CO
benchmark revenue.
Individual Agriculture Risk Coverage
(ARC-IC)
ARC-IC program payments are issued when the actual
individual crop revenue for all covered commodities
planted on the ARC-IC farm is less than the ARC-IC
guarantee for those covered commodities. ARC-IC
uses producer’s certified yields, rather than county
level yields. ARC-IC payments are dependent upon the
planting of covered commodities on the farm. A
producer’s ARC-IC farm is defined as the sum of the
producer’s interest in all ARC-IC enrolled farms in the
state.
The farm’s ARC-IC guarantee equals 86% of the
ARC-IC farm’s weighted benchmark revenue. The
ARC-IC benchmark revenue is the 5-year Olympic
average revenue, which is the MYA price multiplied
by the individual’s certified yield for each year in the
benchmark period. A benchmark revenue is calculated
for each planted covered commodity on the ARC-IC
farm in the current year, weighed and summed across
all covered commodities on the farm. The yields and
MYA prices used in the benchmark calculation will be
the 5 years preceding the year prior to the program
year.
The ARC-IC actual crop revenue is determined by
multiplying the MYA price by the individual’s certified
yield, weighted and summed across all covered
commodities planted on the farm in the current year.
The ARC-IC payment is equal to 65% of the total base
acres on the farm, multiplied by the difference between
the calculated individual guarantee revenue and the
actual individual crop revenue summed across all
covered commodities planted on the farm.
ARC-IC payment rates may not exceed 10% of the
individual weighted benchmark revenue.
More Information
For more information on FSA programs, eligibility and
related information, visit fsa.usda.gov.
Find your Local USDA Service Center
To locate your local FSA office, visit
farmers.gov/service-locator.
