An Oklahoma State University Extension agricultural policy expert is recommending producers be patient while considering whether to change or maintain Agriculture Risk Coverage or Price Loss Coverage elections from 2019 and 2020.
“The current re-election and enrollment period goes until March 15, 2021, so there is plenty of time to survey the markets and think about whether a farm needs price protection or revenue protection,” said Amy Hagerman of the OSU Department of Agricultural Economics. “This may prove particularly beneficial for Oklahoma producers who have wheat base acres enrolled in the safety net programs.”
The national marketing year for wheat ends on May 31, 2021. Producers should have a better idea of how PLC will perform on those acres closer to the March 15 election and enrollment deadline. Key points include:
- Price Loss Coverage makes a payment when the market year average price is below the effective reference price.
- Agricultural Risk Coverage at the county level makes a payment when county revenue is below an ARC-CO guarantee.
- Agricultural Risk Coverage at the individual level makes a payment when a farm’s revenue is below the ARC-IC guarantee.
“For all commodities, watch the national average price expectations for the 2021 crop and compare them to the reference prices,” Hagerman said. “The U.S. Department of Agriculture website has resources and data to help producers make ARC and PLC decisions.”
She also recommended producers talk through options with OSU Extension and USDA Farm Service Agency county experts.
“Our 358 FSA staff across the state have done a tremendous job of keeping the offices open and meeting producer needs these past 10 months,” said Scott Biggs, Oklahoma FSA executive director. “As farmers and ranchers understand all too well, you never know what the future holds. I strongly encourage reaching out to your local office sooner rather than later.”
Farm Service Agency office staff implement agricultural policy, administer credit and loan programs, and manage conservation, commodity, disaster and farm marketing programs.
OSU Extension is one of two state agencies administered by the university’s Division of Agricultural Sciences and Natural Resources and is a key part of OSU’s state and federally mandated teaching, research and Extension land-grant mission.
Source : okstate.edu