Farmers are getting a better idea of which farm program will be most beneficial for their farm in the next five years. Steven Johnson with Iowa State University has been simplifying the program for farmers at recent meetings. He says the first step is updating yield based on an average of the 2008-2012 crop years. He says farmers will see the biggest benefit from updating their corn yield.
Johnson’s analysis of the programs indicates soybeans probably won’t trigger payments under the ARC or PLC program. However, most farmers in the corn belt will receive a decent corn payout under the ARC County program.
He says the PLC or Price Loss Coverage looks like it will be the best program for farmers growing small grains.
The reference price for corn is $3.70 and for soybeans its $8.40. Johnson says prices would have to drop below these levels to trigger a payment under the PLC program… which is unlikely.
He says farmers will have until the end of March to make their farm program elections.
