Choosing between ARC and PLC anything but clear
A farm management analyst suggests farm program decisions are being clouded by market and weather uncertainty.
Kent Thiesse says growers have a lot to consider leading up to the March 15th enrollment deadline for Ag Risk Coverage and Price Loss Coverage.
“The two main factors (are) where you think prices are going, especially if we just (look at) corn. How pessimistic are you on the price scenario we’re in? And then the other factor of course in many areas is what are your thoughts on drought.”
He tells Brownfield ARC-County is probably the choice for farmers who believe yields will be reduced by widespread dryness this year.
“If county yields are down, that favors ARC-County because it’s going to kick in quicker. If you’re more concerned with price (that favors PLC). and the two kind of go opposite directions, because obviously if we have a huge yield prices are probably going to be a little stronger.”
Thiesse says choosing between ARC and PLC is more complicated for corn, but he expects most farmers to select ARC-County for soybeans.