The USDA Iowa Farm Service Agency has announced that over 104-thousand farms that enrolled in safety-net programs established by the 2014 Farm Bill will receive financial assistance for the 2016 crop year.
The programs, known as Agriculture Risk Coverage and Price Loss Coverage are designed to protect against unexpected drops in crop prices or revenues due to market downturns.
Producers in all 99 counties have experienced a significant drop in prices or revenues below the benchmark established by the ARC or PLC program and thus, will receive payments totaling nearly $229 million. Payments related to corn made up much of those payments. There were also payments for wheat, grain sorghum, oats, and soybeans. Cash flow from these payments is particularly helpful to farmers and ranchers in counties impacted by natural disasters.
Statewide, over 99-thousand farms participated in ARC-Count,y and over 53-hundred farms participated in PLC.
More details on the price and yield information used to calculate the financing assistance from the safety-net programs is available on the FSA website.