Farm bill update: simple comparison of expected PLC and ARC-CO payments

Farm bill update: simple comparison of expected PLC and ARC-CO payments

Editor's note: Bobby Coats is a professor, University of Arkansas Division of Agriculture

A simple comparison of expected PLC (SCO Not Included) and ARC-CO payments

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 discussion may provide some insight into ARC-CO and PLC (SCO-Not Included) program options.

One option is to use the Texas A&M and Missouri FAPRI ARC/PLC Evaluator for Generic Base Module or Decision Tool.

This tool compares expected PLC and ARC-CO payments (the average payment across many possible future realizations of prices and yields) for a county of your choice. In the calculations, they use two key assumptions.

  • First, they assume that you would have a PLC Payment Yield equal to the default value assigned by FSA in the absence of a yield history.
  • Second, they assume expected prices equal to the latest FAPRI projections.

The output reflects only expected payments for PLC and ARC-CO. It should be noted, that choosing ARC-CO precludes one from purchasing the crop insurance Supplemental Coverage Option (SCO). Expected net SCO indemnities are not reflected in the output.

Click Link for pdf presentation and handout

 

2 New WEBINARS: March 10 and 12

Bobby Coats, Professor, University of Arkansas Division of Agriculture; Tony Franco - Chief, Farm Programs Division, Arkansas State FSA Office and Anita Wilson - Agricultural Program Specialists, 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.

March 10, 2015

A Look at the 2015 NASS Crop Values Report and the 2014 Crop Year Preliminary MYA's (Marketing Year Average Prices)

Registration link: https://uaex.zoom.us/webinar/register/924621edc3f580e4cde7dc3c8da9331e

Eugene Young, Deputy Director, USDA-NASS, Delta Regional Office, Little Rock, Ark.

March 12, 2015

Cotton: Farm Bill Considerations and Outlook

Registration link: https://uaex.zoom.us/webinar/register/08248cfe7de320374ac87b605f06faf5

Don Shurley, Professor Emeritus, Cotton Economics, Department of Agricultural & Applied Economics, University of Georgia

 

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 and 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

• 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 and Power Point PDF

• Noninsured Crop Disaster Assistance Program (NAP) with Tony Franco, FSA Arkansas Chief of Farm Programs

Presentation Video and Power Point PDF

 

The online tools, available at http://www.fsa.usda.gov/arc-plc and http://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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