2014 Farm Bill: Historical Likelihood of County ARC and SCO Payments for Soybeans in Illinois
The farmdoc daily posts on May 8th and May 15th analyzed the County Ag Risk Coverage (ARC) and Supplemental Coverage Option (SCO) programs created in the 2014 Farm Bill. County ARC is one of the optional commodity programs available to producers of eligible program crops, while SCO is an optional insurance program which supplements the producer’s underlying individual plan of insurance. Both programs have “shallow loss” coverage designs: payments are triggered when actual revenues or yields fall below a specific guarantee, and are capped at a percentage of the value of the guarantee (details on the new commodity program options can be found in farmdoc daily February 20, 2014; details on SCO can be found in farmdoc daily February 27, 2014 and April 24, 2014; all posts in our continuing series on the 2014 Farm Bill can be accessed here). Today’s post extends the historical analysis of County ARC and SCO to soybeans in Illinois. Since the decision to use the County ARC (or Individual ARC) program limits the producer’s eligibility to use SCO, analysis comparing these programs should be useful in making program decisions.
2014 Farm Bill: Estimated Payment Sizes for County ARC and SCO for Corn in Illinois
Today’s article continues the historical analysis of the new County ARC and Supplemental Coverage Option programs created in the 2014 Farm Bill. Last week’s article (farmdoc daily May 8, 2014) focused on the likelihood of payments being triggered by yield or revenue losses. This article provides estimates of relative payment size based on the same historical data. More details on the new commodity program options can be found in the February 20, 2014 article. Details on SCO can be found in the February 27, 2014 and April 24, 2014 articles.
2014 Farm Bill Farm Safety Net: Summary and Brief Thoughts
• A crop farm has a one-time, irrevocable opportunity to elect either Price Loss Coverage (PLC) or county Agricultural Risk Coverage (ARC) on a crop by crop basis. The producer may also elect individual farm ARC, but this election applies to the entire farm. If no choice is made, the farm defaults to PLC. All producers on a farm must make the same election or face potential loss of payments for the 2014 crop.