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Vilsack unveils risk management programs

U.S. Agriculture Secretary Tom Vilsack Thursday officially unveiled the Agricultural Risk Coverage and Price Loss Coverage programs to help farmers manage risk.

“I think it’s a recognition that there’s significant risk in farming,” said Secretary Vilsack, during a conference call to reporters Thursday, “not just from weather related circumstances, but also precipitous drops in crop prices.”

Producers have through early spring of 2015 to choose the program that’s best for their operations, but once the decisions are made, they hold through the life of the farm bill.

“So it’s going to be important for folks to have the capacity to take a look at on-line tools that will allow them to work with numbers, to develop certain presumptions and assumptions about their operation and see what program, whether it’s the individual ARC or county ARC or the PLC program, is best for their operation and provides the best degree of coverage.”

The new programs take the place of direct payments and offer protection from drops in crop prices and/or revenues. Secretary Vilsack says there will be a lot of conversation about the programs in coming months as well as online tools that allow farmers to develop projections under possible future scenarios.

Starting Monday, Sept. 29, 2014, farm owners may begin visiting their local Farm Service Agency offices if they want to update their yield history and/or reallocate base acres, the first step before choosing which new program best serves their risk management needs.

The next step is this winter when all producers on a farm begin making their election of either the ARC or PLC, which will remain in effect for 2014-2018 crop years.