Comparison of ARC-County and PLC without SCO under the 2014 farm bill

If one ( for any number of reasons) is simply not going to use a farm bill decision aid and wants to gain an increased understanding of their farm-by-farm and crop- by-crop options, this presentation and accompanying county tables may provide insight into ARC-CO (ARC-county) and PLC (SCO-Not Included) program options.

Editor’s Note – Bobby Coats is a professor of agricultural economics in the University of Arkansas Division of Agriculture.

I recommend producers’ final enrollment decision be made using their assumptions and the Texas A&M/University of Missouri FAPRI web-based farm bill decision aid.

If one ( for any number of reasons) is simply not going to use a farm bill decision aid and wants to gain an increased understanding of their farm-by-farm and crop- by-crop options, this presentation and accompanying county tables may provide insight into ARC-CO (ARC-county) and PLC (SCO-Not Included) program options.

USDA extended the deadline for selecting the Agricultural Risk Coverage or Price Loss Coverage program options from the previously announced March 31 to April 7, giving producers an additional week to make their decision.

Analysis Overview

  • Data presented is the average payment across many possible
  • Future realizations of prices and yields
  • The Output Is Generated by
    • Texas A&M/Missouri FAPRI web-based farm bill decision aid
    • ARC/PLC Evaluator for Generic Base
  • There are two key assumptions.
    • First, the assumption is that you would have a PLC Payment Yield equal to the default value assigned by FSA in the absence of a yield history.
    • Second, assume expected prices equal to the latest FAPRI projections. This analysis uses March FAPRI price estimates. (The Food and Agricultural Policy Research Institute is now providing monthly price projections to help farmers in their decisionmaking.)
  • This output reflects expected payments for PLC (SCO-Not Included) and ARC-CO.
  • Choosing ARC-CO precludes purchasing the crop insurance Supplemental Coverage Option (SCO).
  • Expected net SCO indemnities are not reflected in this output.
  • If the results for PLC and ARC-CO are similar for any given crop being considered, one may wish to further consider total possible PLC payments plus expected net SCO indemnities will exceed ARC-CO.

The link to the latest video from the University of Arkansas Farm Bill Webinar Series on March 26:

https://www.youtube.com/watch?v=vZEtN1xelGw

New WEBINAR:

Bobby Coats - Professor, University of Arkansas Division of Agriculture; Tony Franco - Chief, Farm Programs Division, Arkansas State FSA Office and Anita Wilson - Agricultural Program Specialist, Farm Programs Division, Arkansas State FSA Office continue their series of Farm Bill webinars.

Individuals wishing to participate in the webinars must register for each session separately. The webinars are conducted through a software program called Zoom. Upon registration, users will receive an email confirmation with the link to join the webinar and the system requirements for Zoom.

April 1, 2015

Results and Review of the 2015 USDA March Planting Intentions and Stocks Reports, Eugene Young -Deputy Director, USDA-NASS, Delta Regional Office.

Registration Link for April 1: https://uaex.zoom.us/webinar/register/26db47dc4e93e018c5b9141539e44ee6

 

2 Key Farm Bill Outlook and Decision Aid Webinars 

  • Decision Aid Training

2014 Farm Bill Decision Aid Training with Professor James Richardson, Agricultural and Food Policy Center (AFPC) - Texas A&M University

Webinar Video and Power Point PDF

 

  • The Crop Market Outlook & Farm Bill Choices

Professor Pat Westoff, Director of the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri-Columbia

 Presentation Video   Power Point PDF

 

Additional Farm Bill Webinars Available for Viewing

ARC/PLC Overview with Anita Wilson Arkansas FSA, Agricultural Program Specialist
Webinar Video and Power Point PDF
ARC/PLC Yield Updates with Anita Wilson Arkansas FSA, Agricultural Program Specialist
Webinar Video and Power Point PDF
ARC/PLC Base Reallocations with Anita Wilson Arkansas FSA, Agricultural Program Specialist
ARC/PCL Presentation Webinar Video and Power Point PDF

Web-Based Decision Aid with Professor Brad Watkins University of Arkansas Division of Agriculture
Farm Bill Decision Aid Webinar Video and Power Point PDF
Price Loss Coverage (PLC) with Anita Wilson Arkansas FSA, Agricultural Program Specialist
Webinar Video and Power Point PDF
ARC - County Level with Anita Wilson Arkansas FSA, Agricultural Program Specialist
Webinar Video and Power Point PDF
ARC - Individual Level with Anita Wilson Arkansas FSA, Agricultural Program Specialist
Webinar Video and Power Point PDF
The online tools, available at www.fsa.usda.gov/arc-plc and www.uaex.edu/farmbill, allow producers to explore projections on how ARC or PLC coverage will affect their operation under possible future scenarios.

 

 

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