Eastern Iowa Farmer Spring 2021
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By KRIS KOTH<br />
Clinton County Executive Director<br />
Cedar County Acting Executive Director<br />
Farm Service Agency<br />
kris.koth@usda.gov<br />
EASTERN IOWA FARMER<br />
The <strong>2021</strong> ARCPLC sign-up has begun,<br />
and producers have until March 15 to<br />
enroll in the <strong>2021</strong> program. Because<br />
the doors to the FSA office remain<br />
locked to producers, we encourage<br />
them to contact their local FSA office to see how<br />
ARCPLC signup is being handled in their county.<br />
One thing that is the same in every county is<br />
that if there have been any changes to your farming<br />
operation (change in shares, no longer farming<br />
a farm, or you picked up a new farm) since<br />
the 2020 crop year, please contact your office.<br />
Producers are reminded that the <strong>2021</strong> Marketing<br />
Year runs from Sept. 1, <strong>2021</strong> through Aug. 31,<br />
2022. The <strong>2021</strong> Program will be paid in October<br />
of 2022.<br />
Producers can also use the following web tools:<br />
n Gardner-farmdoc Payment Calculator, the<br />
University of Illinois tool that offers farmers<br />
the ability to run payment estimate modeling<br />
for their farms and counties for ARC-County<br />
and PLC.<br />
n ARC and PLC Decision Tool, the Texas<br />
A&M tool allows producers to analyze payment<br />
yield updates and expected payments for<br />
<strong>2021</strong>. Producers who have used the tool in the<br />
past should see their username and much of<br />
their farm data already available in the system.<br />
Following is a quick overview of the three<br />
program options:<br />
Price Loss Coverage (PLC) PLC program payments<br />
are issued when the effective price of a covered<br />
commodity is less than the respective effective<br />
reference price for that commodity. The effective<br />
price equals the higher of the national market<br />
year average price (MYA) or the national average<br />
loan rate for the covered commodity. The effective<br />
reference price is the lesser of 115% of the<br />
reference price or an amount equal to the greater of<br />
<strong>2021</strong> ARCPLC<br />
sign-up underway<br />
at local Farm<br />
Service Agency<br />
the reference price or 85% of the average of MYA<br />
prices from the five preceding years, excluding the<br />
highest and lowest price. The reference Price in<br />
Corn is $3.70 and $8.40 on Soybeans. Payments<br />
are triggered when the marketing year price for<br />
those commodities falls below the reference price.<br />
County Agriculture Risk Coverage (ARC-<br />
CO) ARC-CO program payments are triggered<br />
when the actual county crop revenue of a covered<br />
commodity is less than the ARC-CO guarantee<br />
for the crop. The actual county revenue and the<br />
revenue guarantee are based on county level yield<br />
data for the physical location of the base acres on<br />
the farm and tract.<br />
ARC-CO payments are not dependent upon the<br />
planting of a covered commodity or planting of<br />
the applicable base crop on the farm.<br />
The ARC-CO benchmark revenue is the fiveyear<br />
Olympic average MYA price multiplied<br />
by the five-year Olympic average county yield.<br />
Benchmark yields and MYA’s will be calculated<br />
using the five years preceding the year prior to the<br />
program year.<br />
The ARC-CO guarantee is determined by<br />
multiplying the ARC-CO benchmark revenue by<br />
86%. The ARC-CO actual crop revenue is determined<br />
by multiplying the applicable actual county<br />
yield by the MYA price for the program year.<br />
County yields for the benchmark and actual<br />
revenues will be based on the physical location<br />
and historical irrigated percentage of base acres<br />
on the farm and tract. If a farm has base acres<br />
physically located in more than one county or has<br />
a historical irrigated percentage for the covered<br />
commodity, the benchmark and actual crop revenues<br />
will be weighted and summarized based on<br />
those aspects to the farm level.<br />
The ARC-CO payment is equal to 85% of the<br />
base acres of the covered commodity multiplied<br />
by the difference between the county guarantee<br />
and the actual county crop revenue for the covered<br />
commodity. Payment rates may not exceed<br />
10% of the ARC-CO benchmark revenue.<br />
Individual Agriculture Risk Coverage (ARC-<br />
IC) ARC-IC program payments are issued when<br />
the actual individual crop revenue for all covered<br />
If you have<br />
any questions,<br />
please contact<br />
your local<br />
FSA Office.<br />
Cedar County<br />
205 W. South St.,<br />
Ste. 3, Tipton, IA<br />
52772<br />
(563) 886-6061<br />
Clinton County<br />
1212 17th Ave.,<br />
DeWitt, IA 52742<br />
(563) 659-3456<br />
Dubuque County<br />
210 Bierman<br />
Road, Epworth, IA<br />
52045<br />
(563) 876-3328<br />
Jackson County<br />
601 E. Platt St.,<br />
Maquoketa, IA<br />
52060<br />
(563) 652-3237<br />
Jones County<br />
300 Chamber Dr.,<br />
Anamosa, IA<br />
52205<br />
(563) 462-3517<br />
102 <strong>Eastern</strong> <strong>Iowa</strong> <strong>Farmer</strong> | <strong>Spring</strong> <strong>2021</strong> eifarmer.com
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