Economist: Yield rollbacks may reduce PLC benefits
Most farmers have chosen to participate in the Price Loss Coverage program, but if they don’t have a lot of bushels, they won’t get as big a payment as they expect, economist David Widmar of Agricultural Economic Insights has written.
“With each year that passes, the PLC program provides less effective coverage. This post has focused on corn, but the challenges exist for all PLC crop. One has to wonder how this might be addressed in the next farm bill, assuming the ARC [Agriculture Risk Coverage] and PLC programs continue,̦” Widmar wrote.