USDA Illinois Farm Service Agency (FSA) Acting Executive Director, (SED) Rick Graden announced over 125,000 Illinois 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 (ARC) and Price Loss Coverage (PLC), are designed to protect against unexpected drops in crop prices or revenues due to market downturns. “These safety-net programs provide help when price and revenue fall below normal,” said Acting Illinois SED Graden “Payments to barely, corn, oats, grain sorghum, soybeans, wheat, canola, and dry pea producers are helping provide reassurance to our Illinois farm families who are standing strong against low commodity prices compounded by unfavorable growing conditions.”
Producers in 102 Illinois 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 $373 million. Payments related to corn and wheat crops made up much of those payments. Cash flow from these payments is particularly helpful to farmers and ranchers in counties impacted by natural disasters.
“Payments by county for an eligible commodity can vary because average county yields will differ,” said Acting Illinois SED Graden. Statewide, over 125,000 farms participated in ARC-County and nearly 14,000 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 at www.fsa.usda.gov/arc-plc and www.fsa.usda.gov/il.