By Andi Anderson
The USDA recently released payment estimates for the 2024 Price Loss Coverage (PLC) and Agriculture Risk Coverage – County (ARC-CO) programs. Based on the latest data, most corn, soybean, and wheat producers will see limited or no payments under these programs.
PLC payments depend on the market year average (MYA) price falling below a fixed reference price. For 2024, reference prices are $4.26 for corn, $9.66 for soybeans, and $5.50 for wheat. The estimated MYA prices are $4.35 for corn, $9.95 for soybeans, and a final price of $5.52 for wheat. Since all estimated or final prices are higher than the reference values, no PLC payments are expected.
ARC-CO payments depend on county revenue, which is calculated using both yield and price. The revenue must fall below 86% of a benchmark average for payments to be triggered. For corn, only seven Michigan counties are expected to receive ARC-CO payments due to yield losses. In wheat, three counties will likely get payments for similar reasons.
Soybeans offer the most support, with 21 counties estimated to receive ARC-CO payments across irrigated, non-irrigated, and all-acre categories. Payments range from $0.37 to $53.87 per base acre. Although soybean prices are below the $11.12 benchmark, yield losses are necessary for payments.
Recent reforms have raised the benchmark guarantee from 86% to 90% and increased the maximum payment rate from 10% to 12%, which may improve future program benefits.
Final 2024 payments will be announced in September. For updates, visit the USDA ARC/PLC Program Data website or check with local USDA offices.
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Categories: Michigan, Crops, Corn, Soybeans, Wheat