The 2018 Farm Bill allows a new farm program decision between Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC) by March 15th, 2021. And each year thereafter until 2023, which will likely be when the next Farm Bill will be passed. More flexibility for farmers to choose between programs is welcomed after the 2014 Farm Bill forced a 5-year irrevocable decision, but the choice is nonetheless difficult to make.
In an effort to help farmers with this difficult and very important decision. K-State Research & Extension, Agricultural Economics has a plethora of information on the 2018 Farm Bill on their web site. The best way to find the farm bill resources is once you have gotten onto the web site at www.agmanager.info then across the top on the second menu bar click onto Ag Policy.
Robin Reid, K-State Extension Farm Economist has posted a paper that is a good overview of the major points of the ARC/PLC decision and what producers should be considering. It is titled “ARC or PLC? That is the Question”.
Next Robin and other ag economists have developed a user friendly spreadsheet that shows the tradeoff between ARC-CO and PLC payments at various Marketing Year Average prices and county yield levels. A tutorial video is also available on using the spreadsheet.
Of course even after looking at the above resources and applying them to your operation it is still not an easy, clear-cut decision. There are many factors involved weather, local and global grain markets, local and global grain supply inventories, international trade (exports), the strength of our dollar, etc.
To hear what our K-State grain marketing folks have to say on the “Grain Markets and Outlook for 2021”. You can find that information as well on the AgManager.info web site, it is on the home/front page in “Recent Updates”.
If anyone has any questions or needs any asistance, please feel free to contact Alicia Boor at the Cottonwood Extension District office in Great Bend 620-793-1910 and Stacy Campbell in the Hays office 785-628-9430.