Crop Insurance Deadline Nears
Farmers have until March 15 to make their 2022 Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) elections and enrollments through the USDA Farm Service Agency. ARC or PLC crop insurance coverage protects farmers against future market fluctuations.
The ARC-CO program provides income support tied to historical base acres, not current production, of covered commodities. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.
PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity.
For more information on crop insurance options, visit https://www.fsa.usda.gov/…
The website offers resources to help farmers make informed decisions and evaluate trade-offs between the ARC-CO and PLC, and different commodities. This includes web links to the National Coalition for Producer Education, led by the University of Illinois, and the Agricultural and Food Policy Center at Texas A&M University.
Sorghum growers will receive additional financial security in 2022. The USDA Risk Management Agency set the sorghum crop insurance price election for reinsurance year 2022 at 99.6% of the price of corn compared to 96% for 2021. This price election means farmers will have the opportunity to insure grain sorghum at a price almost identical to that of corn.
"This price election gives sorghum producers their largest amount of price protection relative to corn in history under the federal crop insurance program," says National Sorghum Producers CEO Tim Lust in a press release. "We are pleased that farmers will have the protection they need to meet the demand currently driving historically strong prices in the marketplace."
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