
The 2021 ARC/PLC decision must be made by March 15. It is likely that no payments will be made for corn or soybeans and other crops may lean toward PLC.
Producers have until March 15 to elect either PLC or ARC for their 2021 crops. It is likely that for corn and soybeans there will be no payment for the 2021 crop year unless prices dramatically decrease or your county yield decreases (and the decrease would likely need to be more than 25%).
Here are some factors to consider when you make your decision:
- If you are interested in using SCO in conjunction with your crop insurance plan, then you need to sign up for PLC. SCO is only allowed if you elect PLC.
- If you are in a drought and you think that your county yields will be much lower than the average, then ARC likely makes more sense.
- If you have certain crops such as peanuts, some legumes, etc. then likely PLC will make a payment.
- Wheat PLC may make a small payment but expected prices are currently over the effective reference price of $5.50
- Four crops (Lentils, Large Chickpeas, Rapeseed and Crambe) have seen their effective reference price decrease by a bit. Remember that the effective reference price has a band between 100% and 115% of the old 2014 reference price that can be adjusted each year. These had increased due to higher prices but are starting to adjust downwards.
The bottom line for corn and soybeans is don’t count on a payment for the 2021 crop. However this is good news since it means prices are much higher than the last five or so years.
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