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The case for ARC-IC with low 2019 corn yields

Brent Young
CSU Extension

The March 16 deadline for making the 2019-20 Title 1 farm bill program decision is fast approaching.

The Agriculture Risk Coverage — County Option versus Price Loss Coverage choice for most program crops is somewhat straight forward however, the decision for corn seems less defintitive. Given the current outlook for the corn market in 2019 and 2020 it seems unlikely that either ARC-CO or PLC will generate a payment.

Many corn producers in northeastern Colorado experienced lower than normal yields in 2019 due to a number of adverse weather conditions (hail, severe straight line winds at harvest, etc.). Producers who had significantly lower corn yields in 2019 may want to consider looking at the Agriculture Risk Coverage-Individual Option for the 2019-20 crop years.

The Agriculture Risk Coverage-Individual Option differs from ARC-CO in that the yield component of the guaranteed revenue calaculation is based on the individual yields of the FSA farm and not the county yields. An additional, very important difference between between ARC-IC and ARC-CO is that any payment genertated by ARC-IC is only paid on 65% of the farms base acres.

If you are interested in determinimg if ARC-IC might be a good choice for your farm there are two resources available to help you. The first one is an Excel based online tool that can be found at https://farmdoc.illinois.edu/assets/fast-tools/exe/setupARC-COPLC.exe. The second option would be to attend the free Farm Bill Decisions webinar scheduled for Monday, March 2 starting at 6 p.m. The web address for this free webinar is https://zoom.us/j/839215291.

The online tool and the webinar are educational tools meant to provide farmers with information to assist them in making their farm bill Title 1 program decisions. The information provided is not a guarantee of future FSA payments. Potential ARD-IC payments in 2020 are dependant on 2020 yields.

For more information contact Brent Young at (970) 522-7207 or brent.young@colostate.edu. ❖


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