ARC-CO and PLC payment calculators available for Colorado | TheFencePost.com
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R. Brent Young
Regional Extension Specialist Colorado State University

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ARC-CO and PLC payment calculators available for Colorado

Operating loan renewal time is well underway and many farmers and ranchers are busy preparing their financial documents to share with their ag lender. One common financial document required by most lenders is a cash flow statement. The cash flow statement captures all of the inflows and outflows of the farm/ranch business and designates the month in which the income or expense occurs.

One important income item that should be recorded in October is the Farm Bill Title 1 commodity support payment. The payment that may be received in October of 2017 is from the 2016 crop year and the final amount of the payment for most spring planted crops won't be known until this fall.

In an effort to assist producers in estimating their 2016 ARC-CO and PLC payments Excel spreadsheets have been created. The spreadsheets were developed as a cooperative venture between CSU Extension and Northeastern Junior College. Students enrolled in Professor Kelly Heunink's Farm & Ranch Management course at NJC developed these rather sophisticated tools to calculate these very complex formulas. These spreadsheets have been posted to the CSU Extension Agriculture & Business Management website. The ABM website can be accessed at http://www.wr.colostate.edu/ABM .

Farmers can estimate their 2016 ARC-CO payment by simply downloading the Excel spreadsheet, selecting their county, crop and production practices from the dropdown menus and then adding the estimated county yield, estimated MYA price and their base acres. The spreadsheet will provide an estimate for any county and any eligible crop in Colorado.

The PLC calculator is much more straight forward. Producers need only to download the calculator, indicate the crop in question using the dropdown menu, and then enter their PLC yield and base acres.

In some cases the Title 1 commodity support payments may provide the extra income the farm/ranch operation may need to show a profit for 2017. These calculators can help producers estimate an important cash inflow.

If you have questions about this topic or any other agricultural business management issue, please feel free to contact R. Brent Young at (970) 522-7207 or by email at brent.young@colostate.edu.