Article: Farmers can receive subsidies if the price of their crops falls below a certain benchmark set by Congress. However, they must choose to enroll either for Price Loss Coverage or Agricultural Risk Coverage (ARC). Also, ARC comes in two forms. Price Loss Coverage. You receive a payment if your covered commodity is below the reference price. Payments are made on a crop-by-crop basis using your farm's base acreage and program yield. You can enter covered commodities individually. ARC-County option. FSA will estimate crop revenue using the average county yield. You will receive payment if the crop revenue falls below the ARC-County guaranteed revenue. You can enter covered commodities individually. ARC-Individual option. If the actual revenue from all of your covered commodities is less than the ARC-Individual guarantee, then you will receive payment. If you choose this option, then you must enter all covered commodities. Not every commodity is eligible for price loss payments or ARC coverage. Instead, only the following will qualify: barley corn rice (medium grain, long grain, and California medium grain) oats grain sorghum wheat chickpeas (large and small) peanuts soybeans dry peas lentils other oilseeds In order to qualify, you will also need to meet certain Adjusted Gross Income limits and be actively engaged in farming. Talk to FSA staff about whether Price Loss Coverage or Agricultural Risk Coverage is better for you. Once you make a choice, you can't change easily.
What is a summary of what this article is about?
Compare the programs. Check if you grow a qualifying commodity. Contact your FSA office.