|
 ARC
and PLC provide financial protections to farmers from
substantial drops in crop prices or revenues and are vital
economic safety nets for most American farms. Meanwhile, DMC
provides producers with price support to help offset milk and
feed price differences.
The American Relief Act, 2025 extended many Farm Bill-authorized
programs for another year, including ARC and PLC as well as DMC.
ARC and PLC
Producers can elect coverage and enroll in ARC-County (ARC-CO)
or PLC, which provide crop-by-crop protection, or ARC-Individual
(ARC-IC), which protects the entire farm. Although election
changes for 2025 are optional, producers must enroll through a
signed contract each year. Also, if a producer has a multi-year
contract on the farm it will continue for 2025 unless an
election change is made.
If producers do not submit their election revision by the April
15 deadline, their election remains the same as their 2024
election for commodities on the farm from the prior year. Farm
owners cannot enroll in either program unless they have a share
interest in the cropland.
Covered commodities include barley, canola, large and small
chickpeas, corn, crambe, flaxseed, grain sorghum, lentils,
mustard seed, oats, peanuts, dry peas, rapeseed, long grain
rice, medium grain rice, safflower seed, seed cotton, sesame,
soybeans, sunflower seed and wheat.
USDA also reminds producers that ARC and PLC elections and
enrollments can impact eligibility for some crop insurance
products including Supplemental Coverage Option, Enhanced
Coverage Option and, for cotton producers, the Stacked Income
Protection Plan (commonly referred to as STAX). For more
information on ARC and PLC, producers can visit the ARC and PLC
webpage or contact their local USDA Service Center.
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DMC
DMC is a voluntary risk management program that offers protection to
dairy producers when the difference between the all-milk price and
the average feed price (the margin) falls below a certain dollar
amount selected by the producer.
DMC offers different levels of coverage, even an option that is free
to producers, minus a $100 administrative fee. The administrative
fee is waived for dairy producers who are considered limited
resource, beginning, socially disadvantaged or a military veteran.
DMC payments are calculated using updated feed and premium hay
costs, making the program more reflective of actual dairy producer
expenses. These updated feed calculations use 100% premium alfalfa
hay. For more information on DMC, visit the DMC webpage.
[U.S. Dept. of Agriculture]
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