In a time of volatility, managing risk remains a priority for farmers and ranchers, and new analysis from the American Farm Bureau Federation examines several farm bill risk management tools included in Title I, explaining their impact and importance to farmers. The analysis is part of a Market Intel series dedicated to farm bill programs, designed to inform discussions about renewing the farm bill.
“Title I of the farm bill, known as the commodity title, has provided certainty and predictability to eligible producers by reauthorizing and improving commodity, marketing loan, sugar, dairy and disaster programs,” economist Shelby Myers explains in this analysis, which is the third Market Intel focused on Title I. This article breaks down the Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs, which provide risk management coverage based on price and revenue targets for farmers and ranchers growing commodities.
Myers concludes in the analysis that one factor remains consistent as farmers and ranchers faced unprecedented circumstances in recent years: the need for a variety of risk management options, such as ARC and PLC, that fit farmers’ and ranchers’ unique situations. Risk management tools like these are vital to farmers and ranchers being able to mitigate the unpredictable nature of farming.
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