Ag Policy Blog

Clarifying Some SCO Issues

By Chris Clayton , DTN Ag Policy Editor

Following my article on Thursday about some policy discussions regarding ARC, PLC and SCO, I got an email from the Risk Management Agency informing me some items needed clarification.

"Thank you for writing a piece helping farmers stay informed of the new Farm Bill options. I just want to take a minute to clarify a few things that might help your readers and keep everyone on the same page. In the article from yesterday, Grasping Farm Program Changes Wheat Farmers Have Quick Decision on SCO; ARC, PLC Waiting in the Wings, there are a few points that might need updating to reflect the policy language. Feel free to reference our materials online or give me a call, but I do hope for the sake of the readers that you consider revising your copy.

"Most importantly, PLC is not a prerequisite for SCO. Your article says, “Producers can use SCO only if they sign up for Price Loss Coverage…”

"It also says that winter wheat growers have until December 15 to drop SCO if they decide to sign up for ARC. That’s not quite the language from the policy: They must drop SCO by the earlier of December 15 or the acreage reporting date for their underlying policy. In some cases the acreage reporting date may be earlier than December 15.

"The article states that the purchase of SCO would “boost individual coverage” to a higher level. SCO does not increase individual coverage, rather it supplements individual coverage with area-based coverage.

"Additionally, if you are hearing otherwise, please do refer anyone talking about SCO to the RMA website, or to me. We have been working hard to put as much information up there as quickly as possible to keep producers informed."…

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