Economist says ’22 ARC versus PLC decision easy for most
An agriculture economist says for most farmers, the decision between Agricultural Risk Coverage and Price Loss Coverage is pretty easy this year. Paul Mitchell with the University of Wisconsin says, “I’m really strongly encouraging people to sign up for ARC, but the reality is neither of them are very likely to pay.”
Mitchell tells Brownfield with commodity prices where they are, he’s not counting on farmers to get a payment on the major crops. He says there is a slightly higher chance of a payout under ARC, but if farmers want the new Supplemental Coverage Option, they will have to use PLC. “It’s a good option maybe for people who want to get higher coverage and are very highly tied to the county-level outcomes. You’ll have to decide that yourself, and what’s the likelihood in your county, how closely tied you are to county yields. To me, it’s an individual decision. Some people will find it useful and some won’t.”
And Mitchell’s advice?? “If you want higher coverage, really look at going into a higher-percent revenue protection at 80 or 85 percent. Some of you tied closely to the county level might want to go with ECO and SCO.”
The deadline to sign up for crop insurance is Tuesday, March 15th.