The USDA’s Farm Service Agency reminds farm owners that they have a one-time opportunity to update Price Loss Coverage (PLC) program yields for covered commodities on the farm. The deadline is September 30, 2020, to update yields, which are used to calculate the PLC payments for 2020 through 2023. Additionally, producers who elected Agriculture Risk Coverage (ARC) should also consider updating their yields.
“The last time farmers could update yields for these important safety-net programs was in 2014,” said FSA Administrator Richard Fordyce. “It is the farm owner’s choice whether to update or keep existing yields. So, if you rent, you’ll need to communicate with your landlord who will be the one to sign off on the yield updates.”
Updating yields requires the signature of one owner on a farm and not all owners. If a yield update is not made, no action is required to maintain the existing base crop yield on file with FSA.
For program payments, updated yields will apply beginning with the 2020 crop year which, should payments trigger, will be paid out in October of 2021.
Determining Yield Updates
The updated yield will be equal to 90% of the average yield per planted acre in crop years 2013-2017. That excludes any year where the applicable covered commodity was not planted and is subject to the ratio obtained by dividing the 2008-2012 average national yield by the 2013-2017 average national yield for the covered commodity.
The chart below provides the ratio obtained by this calculation.
If the reported yield in any year is less than 75 percent of the 2013-2017 average county yield, the yield will be substituted with 75 percent of the county average yield.
PLC yields may be updated on a covered commodity-by-covered commodity basis by submitting FSA form CCC-867 to include a farm owner’s signature.