Agriculture Risk Coverage

Stored: Agriculture Risk Coverage

Agriculture Risk Coverage

Type	Program
Sponsor Organization	Farm Service Agency
Top Organization	Department of Agriculture
Creation Legislation	Agricultural Act of 2014 (Public Law 113-79), Agricultural Improvement Act of 2018 (Public Law 115-334)
Website	Website
Purpose	Agriculture Risk Coverage program, run by the U.S. Department of Agriculture through its Farm Service Agency, aids farmers against crop revenue drops, stabilizing income and supporting sustainability for crops like corn and soybeans nationwide.
Program Start	2014
Initial Funding	$1 billion
Duration	Ongoing
Historic	No

The Agriculture Risk Coverage (ARC), established in 2014 under the Agricultural Act of 2014 and expanded by the Agricultural Improvement Act of 2018, is administered by the Department of Agriculture (USDA) through its Farm Service Agency (FSA) to provide revenue guarantees to farmers, allocating over $30 billion since inception to support approximately 1.2 million farms annually by 2025. Initially funded with $1 billion, it has grown to distribute $3 billion in FY 2024 across 1.2 million policies, insuring crops like corn and soybeans at farms nationwide. Despite its impact, challenges like funding competition, complex eligibility, and program uptake persist (web ID: 4), but it remains a cornerstone of USDA’s risk management efforts.

Official Site

Goals

• Stabilize farm income by protecting against revenue losses from low crop prices, poor yields, or both at county or farm levels.
• Encourage risk management and agricultural sustainability through a revenue-based safety net for program crops.
• Provide a flexible, modern alternative to traditional price-based supports, reducing financial risk for farmers.

Organization

The ARC program is managed by USDA’s Farm Service Agency, overseen by Administrator Zach Ducheneaux since 2022, with regional FSA offices and county committees implementing policies under federal oversight. It operates via annual appropriations, guided by the Agricultural Act of 2014, Agricultural Improvement Act of 2018, and subsequent funding acts like Public Law 117-328 (2022).

Partners

• National Corn Growers Association
• American Soybean Association
• National Association of Wheat Growers
• University of Minnesota Extension

History

Authorized by the Agricultural Act of 2014 (Public Law 113-79) and expanded by the Agricultural Improvement Act of 2018 (Public Law 115-334), and launched in 2014 with $1 billion, the ARC program expanded with annual appropriations, reaching $3 billion in FY 2024. It grew from insuring 800,000 farms annually in 2015 to 1.2 million by 2025, addressing farm risks with innovations like individual farm coverage options (web ID: 4). By 2025, it has funded over $30 billion, though GAO notes funding competition concerns (web ID: 4).

Funding

Initial funding of $1 billion in 2014 supported the program’s launch, with over $30 billion appropriated by 2025 via annual USDA budgets—e.g., $3 billion in FY 2024. Ongoing appropriations under the Agricultural Act of 2014 and Agricultural Improvement Act of 2018 sustain its operations, with no fixed end as it addresses ongoing farm risk needs, funded through federal allocations and producer payments.

Implementation

ARC distributes revenue guarantees annually, requiring farmers to enroll program crops and submit historical data, tracked via FSA’s program management system. It progresses through partnerships with agricultural organizations—e.g., 1.2 million farms yearly—and program expansions, adapting to farm needs with no set end, though complex eligibility remains a challenge (web ID: 4).

Related

• Price Loss Coverage (PLC)
• Whole-Farm Revenue Protection (WFRP)

External links

• https://www.fsa.usda.gov/programs-and-services/arc-plc/index
• https://www.nass.usda.gov
• wikipedia:Agriculture Risk Coverage

Social media

• https://twitter.com/USDA
• https://www.linkedin.com/company/u-s-department-of-agriculture