Ag Policy Blog

Cash receipts for crop producers have dropped $33.75 billion dollars in the last two years, according to USDA farm income reports. In response, the farm bill safety net programs this year will pay farmers $447 million for last year's crops.

USDA on Monday announced the Farm Service Agency has started issuing to checks to producers for the 2023 crops. USDA pegs the payments under Agriculture Risk Coverage (ARC) and Price would be $447 million.

In announcing the payments, USDA's press office wrapped up details about Conservation Reserve Program payments into a single news release detailing $2.14 billion in total payments. The lion's share, $1.7 billion and change, is for CRP payments.

USDA had little to say about the small share of money in the safety going to commodity producers.

"ARC and PLC provide financial protections to farmers from substantial drops in crop prices or revenue and are vital economic safety nets for most American farms.?ARC and PLC program and crop specific data is available online and through your local FSA county office," USDA stated. "Authorized by the 2014 farm bill they can provide a cushion for farmers during tough economic conditions and fluctuating market prices."

The $447 million is actually higher than earlier forecasts by USDA and the University of Missouri Food & Agricultural Policy Research Institute.

ARC and PLC always pay after the full marketing year ends for a crop. So this year's payments are tied to the 2023 harvested crops.

Cash receipts for corn producers fell about $6.9 billion in 2023, but are forecast to fall another $15.9 billion for 2024, according to USDA.

For soybean farmers, cash receipts dropped $2.31 billion in 2023, but are projected to drop another $8.59 billion in 2024.

Corn soybeans and wheat make up the bulk of base acres for farmers enrolled in ARC and PLC.

The House version of the farm bill – which has been waiting action now for 150 days – would boost reference prices and protection levels for both ARC and PLC.

The farm income situation and decline in prices for crop producers prompted some senators in September to call for an ad-hoc disaster package for farmers.

See, "Limited ARC and PLC Support Leads Senators to Call for Aid," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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