Deadline Approaching for 2024 Crop Year Safety Net Programs

By Andi Anderson

Agricultural producers face a crucial deadline of March 15 to enroll in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for the 2024 crop year. These safety net programs, administered by the USDA's Farm Service Agency, offer vital income support to farmers experiencing significant crop price or revenue declines.

In Iowa, producers have completed 38% of expected contracts, totaling 61,996 contracts to date. To safeguard their interests, producers can choose between ARC-County, PLC for crop-by-crop protection, or ARC-Individual for whole-farm coverage. While election changes for 2024 are optional, enrollment with a signed contract is mandatory each year.

Producers with multi-year contracts will see them continue for 2024 unless an election change is made. Failure to submit election revisions by the deadline will result in maintaining the 2023 election for eligible commodities on the farm. Producers missing the deadline won't be enrolled in ARC or PLC for 2024 and won't receive triggered payments.

To enroll, farm owners must have a share interest in the commodity. Eligible commodities include barley, canola, corn, soybeans, and more.

Universities like Iowa State offer web-based tools aiding producers in informed decision-making based on crop-specific data. It's essential to note that enrolling in ARC or PLC programs can impact eligibility for certain crop insurance products from USDA's Risk Management Agency.

Producers opting for PLC can purchase supplemental coverage options through approved insurance providers. However, those selecting ARC are ineligible for Supplemental Coverage Option (SCO) on planted acres. Unlike SCO, the Risk Management Agency's enhanced coverage option remains unaffected by participating in ARC for the same crop on the same acres.

Upland cotton farmers choosing ARC or PLC for seed cotton base acres are ineligible for the Stacked Income Protection Plan (STAX) on planted cotton acres.

For more information on ARC and PLC, visit the ARC and PLC webpage or contact your local USDA Service Center.

Photo Credit: usda