2019 and 2020 Farm Program Decision “Cheat-Sheet”

*** A Guide to aide in Farm Program Decisions for the 2019 and 2020 crop years. ***

*** Table developed by Kent Thiesse, Farm Management Analyst ***

Reasons to Choose
CROP PRICE LOSS COVERAGE ( PLC )
(Price only)
• Think that the final MYA corn price will
below $3.70 per bushel in 2019 or 2020.
➢ 2019 USDA MYA est. = $3.85/Bu.
➢ Early USDA projection for the 2020
Corn MYA price is $3.40/Bu.
➢ Price protection from $3.70 to $2.20
per bu. (Higher max. payment)
• Feel that final County average yields in
2019 and 2020 will be less than 15%
below County benchmark yields.
Reasons to Choose
AG RISK COVERAGE ( ARC-CO )
(Yield & Price using County Yields)
• Feel that final County average yields in
2019 and 2020 will be 20% or more below
County benchmark yields.
➢ A yield reduction of 30% or more will
likely result in max. ARC-CO payment.
• Think that the final MYA corn price will
above $3.70 per bushel in 2019 and 2020.
➢ Final MYA price was $3.70/Bu. or
lower from 2014 to 2018.

• Think that the final MYA soybean price
will below $8.40 per bu. in 2019 or 2020.
➢ 2019 USDA MYA est. = $9.00/Bu.
➢ Early USDA projection for the 2020
Soybeans MYA price is $8.85/Bu.
➢ Want price protection from $8.40 to
$6.20 per bu. (Higher max. payment)
• Feel that final County average yields in
2019 and 2020 will be near or above
County benchmark yields.
• Feel that final County average yields in
2019 and 2020 will be slightly below
(4-5 Bu./A.) County benchmark yields.
➢ A yield reduction of 20% or more will
likely result in max. ARC-CO payment.
• Think that the final MYA soybean price
will above $8.40 per bu. in 2019 and 2020.
➢ Final MYA price was above $8.40/Bu.
from 2014 to 2018.

• Think that the final MYA wheat price will • Feel that final County average yields in
below $5.50 per bushel in 2019 or 2020. 2019 and 2020 will be 15% or more below
➢ 2019 USDA MYA est. = $4.55/Bu. County benchmark yields.
➢ Early USDA projection for the 2020 ➢ A yield reduction of 25% or more will
Wheat MYA price is $4.80/Bu. likely result in max. ARC-CO payment.
➢ Want price protection from $5.50 to
$3.38 per bu. (Higher max. payment) • Think that the final MYA wheat price will
above $5.50 per bushel in 2019 and 2020.
• Feel that final County average yields in ➢ Final MYA price was $5.50/Bu. or
2019 and 2020 will be less than 15% lower from 2015 to 2018.
below County benchmark yields.
Reasons to choose ARC-IC (Yield & Price using Farm Yields) ……
• Separate FSA farm units with 100% prevent plant acres in 2019 are likely to receive the max. ARC-IC payment.
• FSA farm units with a single crop that had very low yields in 2019, compared to 5-year (2013-17) ave. yields.
• FSA farm units with low yields in 2019 in a County not likely to receive 2019 ARC-CO payments.

Remember …… All crops raised on an individual FSA farm unit are factored together for ARC-IC revenue calculations.
All FSA farm units enrolled in ARC-IC in a State are calculated together for IRC-IC determination.
 PLC and ARC-CO Farm Program Comparison Table
PROGRAM PRICE LOSS COVERAGE
DETAILS ( PLC )
Base Price • Crop Reference Price (RP).
• Likely RP’s for 2019 and 2020:
➢ Corn = $3.70/Bu.
➢ Wheat = $5.50/Bu.
➢ Soybeans = $8.40/Bu.
Final Price • 12-month national market year
average (MYA) price.
➢ Sept. 1 to Aug. 31 for corn &
soybeans.
➢ June 1 to May 31 for Wheat.
Payment Yield • Farm Unit FSA program yields.
➢ 2019 --- Current FSA yields.
➢ 2020 --- Higher of Current or
updated FSA yields based on
2013-2017 ave. farm yields.
Payment Revenue
N/A
Payment Acres • 85 percent (.85) of Base Acres
for an eligible crop.
Payment Formula • PLC Payment per Base Acre =
(Ref. Price minus Final MYA Price)
x FSA Yield x .85
• If the final MYA price is higher
than the Ref. Price, there is not a
PLC payment for that crop.
Maximum Payment • (Ref. Price - Nat. Loan Rate) x
(Per Crop Base Acre) FSA Yield x .85
Payment Limits • $125,000 per individual or entity.
• $900,000 max. adjusted gross
income on Federal Tax Return.
SCO Insurance Coverage • Available up to 86% coverage.
• Must sign-up by March 15.
FSA Farm Program Data & Details on MYA prices, benchmark prices and yields, etc. are available at:
Information www.fsa.usda.gov/arc-plc
*** Table developed by Kent Thiesse, Farm Management Analyst ***
AG RISK COVERAGE
*** COUNTY ***
( ARC-CO )
• Benchmark (BM) Price.
• Higher of the Reference Price or
the 5-year “Olympic” ave. price.
• Likely 2019 & 2020 BM Prices:
Corn = $3.70/Bu. (2019 & 2020)
Wheat = $5.66/Bu.(2019)
$5.50/Bu. (2020
Soybeans = $9.63/Bu. (2019)
$9.25/Bu. (2020)
• Same as for PLC.
• 2019 MYA Price Est. (as of 1-01-20)
➢ Corn = $3.85/Bu.
➢ Soybeans = $9.00/Bu.
➢ Wheat = $4.55/Bu.
• County Benchmark (BM) Yields.
➢ 5-year rolling “Olympic” ave.
County RMA yield (TA).
• Harvest yield is the final county
ave. yield (RMA data).
• BM Revenue =
County BM Yield x BM Price
• Revenue Guarantee =
BM revenue x .86 percent (.86)
• 85 percent (.85) of Base Acres
for an eligible crop.
• ARC-CO Payment per Base Acre =
Revenue Guarantee minus Final
County Revenue (Final Co. yield x
final MYA price) x .85
• If the final County Revenue is
higher than the Revenue
Guarantee, there is not an ARC-
CO payment for that crop.
• County BM Revenue x .10 x .85
• Same as PLC.
N/A