What's its worth (photo by Jenna Martin)
Nov 02, 2018
WASHINGTON, DC -- Following USDA’s announcement of the Market Year Average (MYA) prices for rice on October 30, USA Rice has released an updated Price Loss Coverage (PLC) payment calculator for the 2017 rice crop. This USA Rice-developed tool helps to project a farmer’s potential whole-farm PLC payment.
Users are able to input their data to calculate payments, including base acres, payment yield and the sequestration rate. Sequestration reductions to PLC and Agricultural Risk Coverage (ARC) payments are either 6.9% or 6.6% depending on when the Farm Service Agency (FSA) county committee approved the program contract, either 2017 or 2018, respectively.
The MYA prices that will be used to calculate PLC assistance for long grain and southern medium/short grain are $11.50/cwt and $11.70/cwt, respectively. Commodity program payments are soon to be on the way to those eligible farmers.
USA Rice has consistently advocated for the reauthorization and improvement of the PLC program in the new farm bill. The program is the primary tool that helps rice farmers manage their main risk, which is multi-year price declines. While the program does not make farmers whole, it is a strong safety net that provides farmers with modest support when they need it most. Without this program, many farmers would be out of business.
“With the current state of the farm economy, including low commodity prices and the effects of ongoing trade disputes, this assistance is welcome news for rice farmers,” said Joe Mencer, Arkansas rice farmer and chair of the USA Rice Farmers. “If we didn’t have PLC we would’ve been out of business two or three years ago. We need PLC reauthorized in the farm bill this year.”