2014 Farm Bill

Page 1

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET November 2016

Agriculture Risk Coverage (ARC) and

Price Loss Coverage (PLC) Enrollment

2017 AND 2018 ENROLLMENT

2017 and 2018 enrollment of ARC and PLC farms, 

consistent with the program election for the farm and 

covered commodities made in the election period, will 

begin Nov. 1 and end Aug. 1 of the applicable contract 

year.

• 2017 enrollment begins Nov. 1, 2016, and will end 

Aug. 1, 2017.

• 2018 enrollment will begin Nov. 1, 2017, and end 

Aug. 1, 2018.

Crop Reference Prices National Loan Rates Maximum PLC Rate

Barley 1/ $4.95 per bu. $1.95 per bu. $3.00 per bu.

Chickpeas, Large 

(Garbanzo Bean, Kabuli)

$21.54 per cwt. $11.28 per cwt. $10.26 per cwt.

Chickpeas, Small 

(Garbanzo Bean, Desi)

$19.04 per cwt. $7.43 per cwt. $11.61 per cwt.

Corn $3.70 per bu. $1.95 per bu. $1.75 per bu.

Dry Peas $11.00 per cwt. $5.40 per cwt. $5.60 per cwt.

Grain Sorghum $3.95 per bu. $1.95 per bu. $2.00 per bu.

Lentils $19.97 per cwt. $11.28 per cwt. $8.69 per cwt.

Oats $2.40 per bu. $1.39 per bu. $1.01 per bu.

Canola $20.15 per cwt. $10.09 per cwt. $10.06 per cwt.

Crambe $20.15 per cwt. $10.09 per cwt. $10.06 per cwt.

Flaxseed $11.28 per bu. $5.65 per bu. $5.63 per bu.

Mustard $20.15 per cwt. $10.09 per cwt. $10.06 per cwt.

Rapeseed $20.15 per cwt. $10.09 per cwt. $10.06 per cwt.

Safflower $20.15 per cwt. $10.09 per cwt. $10.06 per cwt.

Sesame Seed $20.15 per cwt. $10.09 per cwt. $10.06 per cwt.

Sunflower $20.15 per cwt. $10.09 per cwt. $10.06 per cwt.

Peanuts $535.00 per ton $355.00 per ton $180.00 per ton

Rice, Long Grain $14.00 per cwt. $6.50 per cwt. $7.50 per cwt.

Rice, Medium Grain 2/ $14.00 per cwt. $6.50 per cwt. $7.50 per cwt.

Rice, Temperate Japonica $16.10 per cwt. $6.50 per cwt. $9.60 per cwt.

Soybeans $8.40 per bu. $5.00 per bu. $3.40 per bu.

Wheat $5.50 per bu. $2.94 per bu. $2.56 per bu.

1/ Barley price is based on the price of “all barley.” Previously, the price was based on the “feed barley” price.

2/ Includes short grain; excludes temperate japonica.

PRICE LOSS COVERAGE (PLC)

PLC program payments are issued when the effective 

price of a covered commodity is less than the respective 

reference price for that commodity. The effective price 

equals the higher of the market year average (MYA) 

price or the national average loan rate for the covered 

commodity.
FACT SHEET

Enrollment of ARC and PLC November 2016

The PLC payment amount for a covered commodity 

is equal to 85 percent times the base attributable to the 

covered commodity, times the payment rate for the 

covered commodity. The base attributed to the covered 

commodity is the covered commodity base plus the 

generic base attributed to the covered commodity. 

The payment rate for the covered commodity is the 

difference between the reference price and the effective 

price.

PLC payments are not dependent on the crops planted 

and/or considered planted (except for generic base acres 

as noted above) for the current crop year.

PLC PAYMENT EXAMPLE

Farm Number 1200:

Crop Base Acres Planted Acres PLC Yield

Wheat 100 0 30 bu.

Corn 100 110 80 bu.

Alfalfa 0 165 N/A

TOTAL 200 275

Payment Rate Calculation:

Crop Reference 

Price

Effective Price PLC

Payment 

Rate

MYA 

Price

Loan 

Rate

Wheat $5.50 $5.00 $2.94 $0.50

Corn $3.70 $4.00 $1.95 $0.00

*MYA prices are hypothetical in this example.

In this example, the MYA prices are HIGHER than the 

loan rate, so the MYA prices are the effective prices.

For wheat, the PLC payment rate is $0.50 ($5.50 

reference price minus the $5 effective price).

For corn, the PLC payment rate is $0.00 because the 

effective price ($4) is greater than the reference price 

($3.70).

Payment Calculation:

Crop Base 

Acres

Payment 

%

Payment 

Rate

PLC 

Yield

PLC 

Payment

Wheat 100 85 $0.50 30 bu. $1,275

Corn 100 85 $0.00 80 bu. $0

Note that a payment is triggered for wheat even 

though no wheat has been planted in the crop year.

RISK MANAGEMENT AGENCY’S (RMA) 

SUPPLEMENTAL COVERAGE OPTION 

(SCO)

Producers who have elected PLC, and who also 

participate in the federal crop insurance program 

administered by the Risk Management Agency (RMA), 

may purchase additional crop insurance coverage 

called the Supplemental Coverage Option (SCO). 

SCO provides additional coverage for a portion of a 

producer’s underlying crop insurance policy deductible, 

and is based on expected average county yields or 

revenue. The cost of SCO is subsidized and indemnities 

are determined by the yield or revenue loss for the 

county or area.

Covered commodities on farms that have a valid 

election of County Agriculture Risk Coverage (ARCCO) or farms with a valid election of Individual 

Agriculture Risk Coverage (ARC-IC) are not eligible 

for SCO benefits.

COUNTY AGRICULTURE RISK COVERAGE 

(ARC-CO)

The ARC-CO program provides coverage for revenue 

losses at the county level. ARC-CO payments are issued 

when the actual county crop revenue of a covered 

commodity is less than the ARC-CO guarantee for the 

covered commodity. The ARC-CO guarantee equals 

86 percent of the previous five-year national MYA price, 

excluding the years with the highest and lowest prices 

(the ARC guarantee price), multiplied by the average 

historical county yield (the ARC county guarantee 

yield), excluding the years with the highest and lowest 

yields. (A substitute yield is used in any year when the 

ARC county yield is below 70 percent of the transitional 

yield for the applicable crop and county.)

The ARC-CO payment is equal to 85 percent of the base 

acres of the covered commodity times the difference 

between the county guarantee and the actual county 

crop revenue for the covered commodity. Payments may 

not exceed 10 percent of the ARC-CO guarantee price 

multiplied by the ARC-CO guarantee yield. For ARCCO payment purposes, any covered commodity planted 

on generic base is attributed to the planted covered 

commodity.

ARC-CO COUNTY AVERAGE YIELDS

The ARC-CO program relies solely on county average 

yield data. No yields from individual participating farms 

are used in the calculations.

Page 2
An actual average county yield is calculated as the 

production of a covered commodity in a county divided 

by the commodity’s total planted acres for a crop year in 

the county, as determined by the Farm Service Agency 

(FSA). For wheat, corn, grain sorghum, barley and 

oats, planted acres are defined as harvested acres plus 

unharvested acres.

Separate irrigated and non-irrigated yields are 

established in a county having a sufficient number of 

farms with planted and considered planted (P&CP) 

acreage history of a covered commodity in 2009 

through 2012, as determined by FSA. These separate 

yields are only established where at least an average of 

25 percent of a covered commodity’s P&CP acreage was 

irrigated in 2009 through 2012 and at least an average 

of 25 percent of the same covered commodity’s P&CP 

acreage in that county was non-irrigated in 2009 

through 2012.

An average historical county yield is the average of 

actual average county yields for the most recent five 

years, excluding each of the crop years with the highest 

and lowest yields and substituting 70 percent of the 

county transitional yield in each year when the actual 

average county yield is less than 70 percent of the 

county transitional yield.

The actual county average yield for ARC-CO is based 

on county-level National Agricultural Statistics Service 

(NASS) data, if available. When county-level NASS 

yield data do not exist for the county, FSA uses the next 

best data sources available to establish yields going next 

to county level RMA data. If neither NASS nor RMA 

county level data is available, the FSA state committee 

has discretion to use the NASS district data that covers 

multiple counties or to use other sources.

EXAMPLES OF HOW SMALL VARIATIONS 

IN YIELDS BETWEEN COUNTIES CAN 

IMPACT ARC-CO PAYMENTS

Assume County A had an average yield of 160 bushels 

per acre from 2009 through 2013. National prices for 

the same years averaged $5.29 per bushel, making the 

guarantee equal to $727.90 (86 percent of 160 bushels 

times $5.29). In 2014, the weather is ideal and the 

county had a 197-bushel-per-acre yield, an increase of 

23 percent from the historical yield. The 2014 national 

average corn price was $3.70, making the county’s 

actual revenue equal to $728.90 (197 bushels times 

$3.70). Since the actual revenue ($728.90) is greater 

than the historical revenue ($727.90), the ARC-CO 

payment rate is zero.

Assume neighboring counties have similar weather 

conditions and also have historical yields of 160 bushels 

an acre.

• In 2014, the weather was ideal in County B to the 

west, but rains were not as timely as in County A. 

County B’s 2014 yield was 187 bushels an acre, 

5 percent less than in County A, and its 2014 actual 

revenue was $691.90 (187 bushels times $3.70). 

Since the actual revenue ($691.90) is less than 

the historical revenue ($727.90), the ARC-CO 

payment rate is $36 an acre.

• In 2014, the weather was ideal in County C to 

the east, but rains again were not as timely as in 

County A. County C’s 2014 yield was 177 bushels 

an acre, 10 percent less than in County A, and its 

2014 actual revenue was $654.90 (177 bushels 

times $3.70). Since the actual revenue ($654.90) 

is less than the historical revenue ($727.90), the 

ARC-CO payment rate is $73 an acre.

All three counties had great yields. County A, with the 

largest yield, does not get an ARC-CO payment. 

County A is surrounded by Counties B and C that 

receive ARC-CO payments of $36 and $73 an acre, 

respectively, due to slightly lower yields. The marginally 

lower yields result in payments for Counties B and C, 

but the primary driver behind the payments is the 

30 percent decrease in the 2014 corn price (from $5.29 

to $3.70).

WHAT CAN PRODUCERS DO TO HELP FSA 

ESTABLISH ARC-CO COUNTY AVERAGE 

YIELDS?

FSA encourages producers to respond to NASS surveys 

to ensure that NASS has sufficient data points to publish 

county-level yields for ARC-CO calculations.

ARC-CO EXAMPLE

Joe Farmer has 100 percent interest in this farm 

participating in ARC-CO.

Crop Base Acres Planted Acres

Wheat 100.00 0.00

Corn 100.00 30.00

Total 200.00 30.00

FACT SHEET

Enrollment of ARC and PLC November 2016

Page 3
FACT SHEET

Enrollment of ARC and PLC November 2016

DETERMINATION OF ARC-CO PAYMENT RATES

The following charts provide the steps that are used to calculate the ARC-CO payment rate for the two covered 

commodities on Joe’s farm. The county yields in the example are hypothetical and do not represent a specific 

county. The historic MYA prices for the 2009-2012 crops are NASS estimates; the 2013 and 2014 MYA prices are 

hypothetical to demonstrate alternative outcomes for the ARC-CO payment rates.

ARC-CO Payment Rate Determination: Wheat Example

Crop Year 2009 2010 2011 2012 2013 2014 Payment Factors

Step 1. Calculation of Benchmark Revenue

(A) County Yield (bu/acre) 44 51 65 31 46

(B) 70 percent of T-yield 32 32 32 32 32

(C) Higher of (A) or (B) 44 51 65 32 46

(D) ARC-CO County

Guarantee Yield 1/

47

(E) MYA Price 2/ 4.87 5.70 7.24 7.77 6.50

(F) Reference Price 4/ 5.50 5.50 5.50 5.50 5.50

(G) Higher of (E) or (F) 5.50 5.70 7.24 7.77 6.50

(H) ARC-CO

Benchmark Price 3/

6.48

 (I) ARC-CO Benchmark Revenue, (D) times (H) 4/ 304.56

Step 2. Calculation of Actual Revenue

(J) 2014 Price

(K) 2014 Loan Rate

(L) Higher of (J) or (K) 

(M) 2014 County Yield

6.50

2.94

6.50

29.00

 (N) Actual County Revenue, (L) times (M) 188.50

Step 3. Calculation of ARC-CO Payment Rate

(O) ARC-CO Guarantee, (I) times 0.86 5/

(P) Maximum ARC-CO Payment Rate, (I) times 0.10 6/

(Q) Revenue Shortfall, (O) minus (N)

261.92

30.46

73.42

 (R) ARC-CO Payment Rate, Lesser of (P) or (Q) 30.46

1/ The ARC-CO guarantee yield is the 2009-2013 Olympic average of the higher of the county yield or 70 percent

 of T-yield for each year.

2/ The MYA price is the season average farm price for the covered commodity as published by NASS or determined

 by the World Agricultural Outlook Board (WAOB).

3/ The ARC-CO benchmark price is the 2009-2013 Olympic average of the higher of the MYA price or the 2014

 loan rate for each year.

4/ ARC-CO benchmark revenue is the product of ARC-CO guarantee yield and ARC-CO benchmark price.

5/ ARC-CO guarantee is 86 percent of the ARC-CO benchmark revenue.

6/ The maximum ARC-CO payment rate is 10 percent of the ARC-CO guarantee.

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ARC-CO Payment Rate Determination: Corn Example

Crop Year 2009 2010 2011 2012 2013 2014 Payment Factors

Step 1. Calculation of Benchmark Revenue

(A) County Yield (bu/acre) 125 100 165 110 95

(B) 70 percent of T-yield 84 84 84 84 84

(C) Higher of (A) or (B) 125 100 165 110 95

(D) ARC-CO County

Guarantee Yield 1/

112

(E) MYA Price 2/ 3.55 5.18 6.22 6.89 4.50

(F) Reference Price 4/ 3.70 3.70 3.70 3.70 3.70

(G) Higher of (E) or (F) 3.70 5.18 6.22 6.89 4.50

(H) ARC-CO

Benchmark Price 3/

5.30

 (I) ARC-CO Benchmark Revenue 4/ 593.60

Step 2. Calculation of Actual Revenue

(J) 2014 Price

(K) 2014 Loan Rate

(L) Higher of (J) or (K) 

(M) 2014 County Yield

5.25

1.95

5.25

140.00

 (N) Actual County Revenue, (L) times (M) 735.00

Step 3. Calculation of ARC-CO Payment Rate

(O) ARC-CO Guarantee 5/

(P) Maximum ARC-CO Payment Rate 6/

(Q) Revenue Shortfall, (O) minus (N)

510.50

59.36

-

 (R) ARC-CO Payment Rate, Lesser of (P) or (Q) -

1/ The ARC-CO guarantee yield is the 2009-2013 Olympic average of the higher of the county yield or 70 percent

 of T-yield for each year.

2/ The MYA price is the season average farm price for the covered commodity as published by NASS or determined

 by WAOB.

3/ The ARC-CO benchmark price is the 2009-2013 Olympic average of the higher of the MYA price or the 2014

 loan rate for each year.

4/ ARC-CO benchmark revenue is the product of ARC-CO guarantee yield and ARC-CO benchmark price.

5/ ARC-CO guarantee is 86 percent of the ARC-CO benchmark revenue.

6/ The maximum ARC-CO payment rate is 10 percent of the ARC-CO guarantee.

Note that in the above examples, wheat base on Joe’s farm receives an ARC-CO payment even though he did not 

plant wheat on the farm, and conversely, corn base on his farm will not receive an ARC-CO payment.

CALCULATION OF PAYMENT

Calculation of Farm Total Payment: Joe Farmer Example

Crop Base Acres Payment Percentage Payment Rate ARC-CO Payment

Wheat 100.00 85 percent $30.46 $2,589.10

Corn 100.00 85 percent 0.00 0

Total ARC-CO Payments for Joe Farmer $2,589.10

FACT SHEET

Enrollment of ARC and PLC November 2016

Page 5
FACT SHEET

Enrollment of ARC and PLC November 2016

INDIVIDUAL AGRICULTURE RISK 

COVERAGE (ARC-IC)

The ARC-IC program provides revenue loss coverage 

at a farm level. An ARC-IC farm is defined as the sum 

of the interests of a producer in all FSA farms that are 

enrolled in the individual coverage option for ARC in 

a state. Producers who have interests in multiple farms 

in multiple states that are enrolled in ARC-IC have a 

separate ARC-IC farm in each state.

ARC-IC revenue loss payments are made to the ARCIC farm when the current year revenue for all covered 

commodities planted on the ARC-IC farm falls below 

86 percent of the farm benchmark revenue.

All ARC-IC farms in the state in which the producer 

has an interest are included in a single ARC-IC revenue 

calculation to determine a payment rate. The payment 

rate for the ARC-IC farm is capped at 10 percent of the 

farm’s benchmark revenue.

The ARC-IC farm’s guarantee equals 86 percent of 

the ARC-IC farm’s individual benchmark guarantee, 

defined as the five-year average of an ARC-IC farm’s 

annual ARC-IC benchmark revenue (farm’s yield for 

each crop year, multiplied by the higher of the reference 

price or the MYA price) for all covered commodities, 

excluding the high and low annual revenues. Actual 

revenue is computed using the ARC-IC farm’s actual 

yield times the higher of the MYA price or the national 

average loan rate.

ARC-IC payments are calculated by multiplying:

• The ARC-IC payment rate, multiplied by

• The total base acres of the ARC-IC farm(s), 

multiplied by 65 percent.

Producers on farms that have both elected and 

enrolled into ARC-IC will need to work with FSA to 

establish yields for each of the current year planted 

covered commodities on the ARC-IC farm(s) for the 

immediately preceding five years. The yields established 

for the immediately preceding five years are known as 

the benchmark yields. If prior yields are not available 

for each of the current year covered commodities, a 

yield will be assigned by FSA for each of the missing 

years, up to five years, to allow the farm benchmark 

revenue to be calculated for the farm.

After harvest in the current year, the producer is 

required to report current production to FSA for 

calculation of the current year revenue on the farm. 

The reported production multiplied by the higher of the 

reference price or the national MYA price for all covered 

commodities on the ARC-IC participating farm(s) are 

totaled and then divided by the total planted acreage of 

all covered commodities on the participating ARC-IC 

farm(s), resulting in an actual revenue per acre. The 

result will be either a revenue loss or gain per acre. If 

a loss is determined, the ARC-IC revenue loss per acre 

is the ARC-IC payment rate and it is used to make the 

ARC-IC payment on the farm.

The ARC-IC payment on the farm will be calculated as 

follows:

• The ARC-IC payment rate, multiplied by

• The total base acres of the ARC-IC farm(s), 

multiplied by 65 percent.

Payment shares are then taken into account for 

each producer who had an interest in the covered 

commodities on the farm.

ARC-IC EXAMPLE

The following is an example of how an ARC-IC 

payment is calculated. Payments are made on base acres 

in proportion to the planting of covered commodities on 

the farm; however, payment acres are limited to 

65 percent of the total base acres on the farm.

Consider the following farm information for the 2014 

crop. Jane Farmer has 100 percent interest in this farm, 

which is her only farm enrolled in ARC-IC. Jane planted 

three covered commodities on her farm in 2014, and the 

farm has 200 acres of covered commodity base and no 

generic base. This ARC-IC farm information for Jane 

Farmer is shown in the following chart, including the 

production of the covered commodities for the 2014 

crop.

Crop Base 

Acres

2014 

Planted 

Acres

Percentage 

of Crop 

Planted 1/

2014 Crop 

Production

Corn 100.00 110.00 36.67% 11,550 bu.

Soybeans 100.00 25.00 8.33% 1,000 bu.

Grain 

Sorghum

0.0 165.00 55.00% 9,900 bu.

Total 200.00 300.00 100.00%

1/ Percentage of covered commodity for each crop is

 the P&CP acres divided by the total acres of covered

 commodities P&CP on the ARC-IC farm.

Page 6
The following charts illustrate how Jane Farmer’s benchmark revenue, ARC-IC guarantee and maximum ARC-IC 

payment rate are calculated for her ARC-IC enrolled farm. Each of these ARC-IC program factors are calculated on 

a per acre basis. Thus, each factor reflects a value weighed by the plantings of covered commodities on the farm for 

the 2014 crop.

ARC-IC Benchmark Revenue: Calculations for Jane Farmer’s ARC-IC Farm

Crop/Program Year 2009 2010 2011 2012 2013

Step 1. Calculation of the Five-Year Olympic Average Revenue for Covered Commodities

Corn

(A) Yield

(B) 70 percent of T-Yield

(C) MYA Price 1/

(D) Reference Price

 125 100 165 110 95

 85 85 85 85 85

 3.55 5.18 6.22 6.89 4.50

 3.70 3.70 3.70 3.70 3.70

5-Year

Olympic

Average

Revenue 2/

(E) Annual Revenue 3/ 462.50 518.00 1,026.30 757.90 427.50 579.47

Soybeans

(A) Yield

(B) 70 percent of T-Yield

(C) MYA Price

(D) Reference Price

 38 41 29 48 33

 27 27 27 27 27

 9.59 11.30 12.50 14.40 12.95

 8.40 8.40 8.40 8.40 8.40

5-Year

Olympic

Average

Revenue

(E) Annual Revenue 364.42 463.30 362.50 691.20 427.35 418.36

Grain Sorghum

(A) Yield

(B) 70 percent of T-Yield

(C) MYA Price

(D) Reference Price

 90 40 75 80 99

 65 65 65 65 65

 3.22 5.02 5.99 6.33 4.25

 3.95 3.95 3.95 3.95 3.95

5-Year

Olympic

Average

Revenue

(E) Annual Revenue 355.50 326.30 449.25 506.40 420.75 408.50

Step 2. Calculation of Benchmark Revenue, Guarantee and Maximum Payment Rate

Crop Olympic Avg. 2014 Percent

 Rev. Planted

Weighted Revenue (F)

4/

Corn

Soybeans

Grain Sorghum

 579.47 36.67

 418.36 8.33

 408.50 55.00

212.49

34.85

224.68

(G) ARC-IC Benchmark Revenue (per acre), Sum items (F) 472.02

(H) ARC-IC Guarantee, (G) times 86 percent 405.94

(I) Maximum ARC-IC Payment Rate, 10 percent times (G) 47.20

1/ MYA price is the season average farm price for the covered commodity as published by NASS or determined by

 WAOB.

2/ The five-year Olympic average revenue is the average of the 2009-2013 crop revenues dropping the years with the

 highest and lowest revenue.

3/ The annual revenue for a crop is the higher of the crop’s actual yield (A) or 70 percent of the T-yield (B) times the

 higher of the MYA price (C) or the crop’s reference price (D). Values struck out indicate the values excluded in

 the calculations.

4/ Weighted revenue is Olympic average revenue for a crop times the percent planted.

FACT SHEET

Enrollment of ARC and PLC November 2016

Page 7
FACT SHEET

Enrollment of ARC and PLC November 2016

The ARC-IC actual revenue is also calculated on a per acre basis by determining the total revenue for the farm and 

dividing it by the total planted acres on the farm. The per acre ARC-IC revenue for Jane Farmer’s ARC-IC farm is 

illustrated in the following chart.

Actual Revenue Calculation: Jane Farmer’s ARC-IC Farm, 2014 Crop

Crop 2014 Production MYA Price

1/

National Average 

Loan Rate

Crop Revenue 2/

Corn

Soybeans

Grain Sorghum

11,550

1,000

9,900

5.25

8.50

4.98

1.95

5.00

1.95

60,637.50

8,500.00

49,302.00

(A) Total Farm Revenue, sum of crop revenues 118,439.50

(B) ARC-IC Actual Revenue, (A) divided by total planted acres 3/ 394.80

1/ MYA price is the season average farm price for the covered commodity as published by NASS or determined by

 WAOB.

2/ Crop revenue is the product of planted acres times the higher of the MYA price or the national average loan rate.

 The national average loan rate is struck out because it is lower than the MYA price.

3/ Total planted acres of covered commodities on the ARC-IC farm for the 2014 crop.

To determine if Jane Farmer earns ARC-IC payments on her farm for the 2014 crop, the farm’s actual revenue 

is compared to the ARC-IC guarantee. If the ARC-IC actual revenue is less than the guarantee, then Jane earns 

ARC-IC payments. The ARC-IC payment on a farm may be limited by the maximum ARC-IC payment rate. The 

determination and calculation of payments that Jane Farmer is due on her ARC-IC farm are illustrated in the chart 

below. For 2014, Jane’s ARC-IC payment rate is $11.40 per acre, which is below the maximum payment rate.

ARC-IC Payment Calculation: Jane Farmer’s ARC-IC Farm

ARC-IC Payment Item

(A) Benchmark Revenue, Item (G) from Benchmark Revenue Chart

(B) ARC-IC Guarantee, Item (H) from Benchmark Revenue Chart

(C) ARC-IC Actual Revenue, Item (B) from Actual Revenue Chart

(D) ARC-IC Revenue Shortfall, Item (B) minus (C)

(E) Maximum ARC-IC Payment Rate, Item (I) from Benchmark Revenue Chart

(F) ARC-IC Payment Rate, Lessor of (D) or (E)

(G) 2014 Base Acres (Jane Farmer’s ARC-IC Farm)

(I) ARC-IC Payment Percentage

472.02

405.94

394.80

11.14

47.20

11.14

200

0.65

(J) ARC-IC Payment, (F) times (G) times (I) 1,448.20

TREATMENT OF GENERIC BASE ACRES FOR PAYMENT

Generic base acres planted to a covered commodity are eligible for ARC/PLC payments and will be attributed to a 

covered commodity as follows:

• If a single covered commodity is planted on the farm and the total acreage planted equals or exceeds the generic 

base acres on the farm, the generic base acres are attributed to that covered commodity in an amount equal to 

the total number of generic base acres on the farm.

• If multiple covered commodities are planted on the farm and the total number of acres planted to all covered 

commodities on the farm exceeds the generic base acres on the farm, the generic base acres will be attributed to 

each of the covered commodities on the farm on a pro rata basis to reflect the ratio of:

° The acreage planted to a covered commodity on the farm; to

° The total acreage planted to all covered commodities on the farm.

• If the total number of acres planted to all covered commodities on the farm does not exceed the generic base 

acres on the farm, the total acres planted to each covered commodity are attributed to that covered commodity.

Page 8
Example 1 – Single Covered Commodity Planted in 

Excess of Generic Base Acres

Farm Serial Number (FSN) 10 – Producer elects PLC. 

The farm consists of:

• 300 acres cropland;

• 100 acres corn base;

• 100 acres wheat base; and

• 100 acres generic base.

The producer plants 250 acres of corn and no other 

covered commodities. PLC payments in this example 

are calculated using a total of 200 acres of corn (100 

acres of corn base acres plus 100 acres of corn planted 

on generic base acres) and 100 acres of wheat base. 

In this example, 50 acres of cropland are left idle or 

planted to a non-covered commodity.

Example 2 – Multiple Covered Commodities Planted 

on Farm in Excess of Generic Base Acres

FSN 30 – Producer elects PLC:

• 300 acres cropland;

• 100 acres corn base;

• 100 acres wheat base; and

• 100 acres generic base.

Producer plants:

• 200 acres of corn;

• 50 acres grain sorghum;

• 50 acres of soybeans; and

• 300 total acres.

Generic base acres are attributed to the covered 

commodities as follows:

• 200 acres corn planted divided by 300 acres 

total covered commodities planted on the farm 

multiplied by 100 acres generic base equals 

66.67 acres of generic base attributable to corn;

• 50 acres of grain sorghum planted divided by 

300 total covered commodities planted on the 

farm multiplied by 100 acres generic base equals 

16.67 acres of generic base attributable to grain 

sorghum; and

• 50 acres of soybeans planted divided by 

300 total covered commodities planted on the 

farm multiplied by 100 acres generic base equals 

16.67 acres of generic base attributable to soybeans.

ARC AND PLC PAYMENTS

Payments for PLC, ARC-CO and ARC-IC are issued 

after the end of the respective crop year for each 

covered commodity (if triggered), but not before Oct. 1 

of the following year.

• 2015 program year payments will not be issued 

until after Oct. 1, 2016. 

• 2016 program year payments will not be issued 

until after Oct. 1, 2017.

• 2017 program year payments will not be issued 

until after Oct. 1, 2018.

• 2018 program year payments will not be issued 

until after Oct. 1, 2019. 

FOR MORE INFORMATION

This fact sheet is for informational purposes only; other 

restrictions may apply. For more information on ARC/

PLC, visit www.fsa.usda.gov/arc-plc or contact your 

local FSA office. To find your local office, visit 

http://offices.usda.gov.

_________________________________________

In accordance with Federal civil rights law and U.S. Department of 

Agriculture (USDA) civil rights regulations and policies, the USDA, 

its Agencies, offices, and employees, and institutions participating in 

or administering USDA programs are prohibited from discriminating 

based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital 

status, family/parental status, income derived from a public assistance 

program, political beliefs, or reprisal or retaliation for prior civil 

rights activity, in any program or activity conducted or funded by 

USDA (not all bases apply to all programs). Remedies and complaint 

filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, 

American Sign Language, etc.) should contact the responsible Agency 

or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or 

contact USDA through the Federal Relay Service at (800) 877-8339. 

Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA 

Program Discrimination Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA 

office or write a letter addressed to USDA and provide in the letter 

all of the information requested in the form. To request a copy of the 

complaint form, call (866) 632-9992. Submit your completed form or 

letter to USDA by:

1) mail: U.S. Department of Agriculture Office of the Assistant

 Secretary for Civil Rights 1400 Independence Avenue, SW

 Washington, D.C. 20250-9410;

2) fax: (202) 690-7442; or

3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

FACT SHEET

Enrollment of ARC and PLC November 2016

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