ARC and PLC Program Payments

ARC and PLC Program Payments

The Farm Service Agency announced early this month that it would be sending out payments under the ARC and PLC programs. These payments are expected to be more than 10 percent to farmers net income for the year. CliftonAllenLarson principle and Farm CPA Today blogger Paul Neiffer gives more details

Neiffer: "The FSA is in the process of sending out $7 billion — that is with a b — of checks for ARC and PLC payments to farmers this month. Most of the payments or more than half of it relates to corn ARC payments. There are a certain amount of payments in Washington, Idaho, and Oregon related to corn but the majority of it is in the Mid-West. Soybeans are maybe slightly less than $1 billion. Wheat actually has both a PLC payment and a ARC payment this year. I think that will be in excess of $1 billion. Remember on your payments you are limited to $125,000 per person and they are also going to reduce that by the sequestering amount of 6.8 percent. I would still expect some payments yet to come possibly for some of the legumes — peas, lentils, chickpeas and so on. If you elected ARC or PLC on either one of those — there may not be much of a payment. I'm just not sure if you are going to hit a payment on those or not."

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