USDA Sends Safety Net, Conservation Payments

Agriculture Secretary Sonny Perdue has announced that the federal government will pay more than $9.6 billion to producers through the Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC) and Conservation Reserve Program(CRP). Payments are underway.

The USDA is issuing $8 billion in payments under the ARC and PLC programs for the 2016 crop year, and $1.6 billion under CRP for 2017.

“Many of these payments will be made to landowners and producers in rural communities that have recently been ravaged by drought, wildfires, and deadly hurricanes,” Perdue said. “I am hopeful this financial assistance will help those experiencing losses with immediate cash flow needs as we head toward the end of the year.”

The ARC and PLC programs were authorized by the 2014 Farm Bill and offer a safety net to farmers when there is a substantial drop in revenue or commodity prices. Over half a million producers will receive ARC payments and over a quarter million producers will receive PLC payments for 2016 crops.