6/8/2023 0 Comments Oplc definition![]() The program is counter-cyclical in that payments increase as the market price drops. This graph shows how per acre corn PLC payments will change with different national mar-keting year average prices using the calculation ex-ample of 100 base acres of corn with a PLC yield of 140 bushels per acre. Given the following information as an example for corn: PLC Payment = x PLC Yield x Crop Base Acres x 0.85 Any MYA price below the reference price for a commodity will trigger payments for base acres allocated to the commodity according to the PLC payment formula. At the end of the marketing year for the 2014 crop, USDA will report the national marketing year average price. This table gives statutory reference prices for main Indiana crops. SCO: The acronym for Supplemental Coverage Option program, an insurance contract extended only to base acres enrolled in the PLC program. ![]() PLC: The historic yield for a commodity grown on a farm and used as the basis for calculating the per acre payment in PLC.A farm receives payments on only 85% of its base acreage, with each acre reduced by 15% of the calculated per acre payment.The allocation of a base acres to a particular commodity has no bearing on what crop may be planted on that base acre.That allocation determines which commodity’s revenue triggers payments for that base acre.Each base acre is allocated to a specific commodity. Base Acres: The land are of an FSA farm number that is eligible to receive payments.Payment increases as the national marketing year average price falls further below the reference price.Payments are made when current revenue falls below this target.Reference Price: The statutory (given in the law) target price for each covered commodity.average cash price received for a crop over the entire marketing year. MYA Price: The national Marketing Year Average price as calculated by USDA.PLC: The acronym for the Price Loss Coverage program, a new payment program in the 2014 farm bill.Even though the election is for the 5 years, farmers must still “enroll” their base acres each year at their FSA office. Once a commodity is elected to be covered by a program, the commodity will be covered by that pro- gram for the 5 year life of the farm bill which spans the 2014 to 2018 crops. Election decisions must be made by March 31, 2015.Only the ARC-IC re- quires all base acres on a farm be enrolled in the ARC-IC program. Election is done on a crop by crop basis for the PLC and ARC-CO programs (see ARC-CO fact sheet). Program choice in the 2014 Farm Bill is referred to as program election.The SCO add-on program is designed to provide PLC enrollees some insurance protection against year to year shallow losses that fall within the normal insurance deductible. Crops enrolled in PLC have the additional option of purchasing program insurance through the Supplemental Coverage Option (SCO), a program that extends insurance coverage into the contract’s deductible with premiums for SCO subsidized at 65%. The PLC payment for a given commodity is the difference between the commodity’s reference price and the national MYA price multiplied by the PLC program yield and paid on 85% of a farm’s base acres allocated to the commodity. PLC payments are made when the national marketing year average (MYA) price falls below a legislated reference price for the commodity. Price Loss Coverage (PLC) is a new program in the 2014 Farm Bill.
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