Payment and Loan Programs

The Farm Bill starts off with Title 1: Commodities. The most significant change with the 2014 bill is the elimation of direct and counter-cyclical payments. Now, farmers must suffer losses in order to receive payouts. These programs will work in conjunction with crop insurance. It is important to note that neither are available for upland cotton producers, who must use the newly formed STAX program.

Price Loss Coverage (PLC)

Purpose: Farmers must make a one-time choice between PLC and ARC. PLC works by establishing a reference price for each eligible commodity. If the national average marketing year price for the crop, as reported by the USDA National Agriculture Statistical Service (NASS), falls below that reference price, the farmer receives a payment equal to the difference. Participants are required to provide significant contributions to the farming operation in order to be considered as “actively engaged in farming.” PLC is administered by the USDA's Farm Service Agency.
Funding: Unlimited, though the USDA is to submit annual reports to Congress on plantings, production, prices and program costs.
History: Established in the 2014 Farm Bill as a replacement for counter-cyclical payments.
For More Information, Visit These Sites:
USDA's Farm Service Agency
AgriBank.com
AgWeb.com
FarmDocDaily
Montana State University Agricultural Marketing Policy Center Report

Agriculture Risk Coverage (ARC)

Purpose: Farmers must make a one-time choice between ARC and PLC. ARC works by making payments to farmers when, in the current year, the estimated average revenue per acre for a crop (the current year crop yield multiplied by the national average marketing year price for that crop) falls below 86 percent of the estimated historical average per acre revenue for the crop over the most recent five years. Participants are required to provide significant contributions to the farming operation in order to be considered as “actively engaged in farming.” ARC is administered by the USDA's Farm Service Agency.
Funding: Unlimited
History: Established in the 2014 Farm Bill as a replacement for revenue-based payments.
For More Information, Visit These Sites:
USDA's Farm Service Agency
Farm Credit Services of America video
FarmDocDaily
Montana State University Agricultural Marketing Policy Center Report
University of Minnesota's Overview on ARC-CO and ARC-IC

Nonrecourse Marketing

Assistance Loans (MAL)

Purpose: Provides 9-month loans at harvest time for producers to meet cash flow needs without having to sell their commodities when market prices are typically at their lowest. The loan can either be redeemed by repayment or by delivering the pledged collateral to the Commodity Credit Corporation as full payment at maturity. There is a limit of $125,000 per person, per year. MALs are administered by the USDA's Farm Service Agency. Producers who decide to forego MALs can be eligible for loan deficiency payments (LDPs).
History: TK 
Original Sponsor: TK
2013 Sponsor: TK
For More Information, Visit These Sites:
USDA's Farm Service Agency

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Disclaimer: This is an aggregated site, meaning most of the information found within is from another publicly available source. The majority of the program information can be found in the Congressional Research Service's "The Farm Bill (P.L. 113-79): Summary and Side-by-Side" report, as well as the program respective USDA page.