Farm Bill Options: Choosing ARC or PLC

(WASHINGTON, DC) The recently expired 2014 farm bill provided a one-time opportunity for growers to elect either Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) on a commodity-by-commodity basis. The ARC or PLC election was binding for the five-year life of the farm bill. The new 2018 farm bill provides an opportunity for growers to first re-elect ARC or PLC coverage this year on a commodity-by-commodity basis, effective for the 2019 and 2020 crop years. Then, beginning in 2021, growers will have an opportunity to make an annual re-election of ARC or PLC for the three remaining crop years. According to the American Farm Bureau Federation (AFBF), this flexibility allows growers to more frequently choose which risk management tool meets the needs of their farm, and their crops, for the marketing year.