Price Loss Coverage

Stored: Price Loss Coverage

Price Loss 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	PLC, run by USDA via Farm Service Agency, aids farmers with price-based support when crop prices dip below ref price, stabilizing income & markets for corn, soy, wheat, rice, peanuts as an Agriculture Risk Coverage alt.
Program Start	2014
Initial Funding	$800 million
Duration	Ongoing
Historic	No

The Price Loss Coverage (PLC), 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 price guarantees to farmers, allocating over $25 billion since inception to support approximately 1.1 million farms annually by 2025. Initially funded with $800 million, it has grown to distribute $2.5 billion in FY 2024 across 1.1 million policies, insuring crops like corn and soybeans at farms nationwide. Despite its impact, challenges like funding competition, price volatility, and program complexity persist (web ID: 4), but it remains a cornerstone of USDA’s risk management efforts.

Official Site

Goals

• Stabilize farm income by protecting against price declines below statutory reference prices for program crops.
• Support agricultural sustainability and market stability through price-based safety nets for commodities like corn, soybeans, and wheat.
• Provide a predictable, price-focused alternative to revenue-based programs, reducing financial risk for farmers.

Organization

The PLC 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 Georgia 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 $800 million, the PLC program expanded with annual appropriations, reaching $2.5 billion in FY 2024. It grew from insuring 700,000 farms annually in 2015 to 1.1 million by 2025, addressing farm risks with innovations like updated reference prices (web ID: 4). By 2025, it has funded over $25 billion, though GAO notes funding competition concerns (web ID: 4).

Funding

Initial funding of $800 million in 2014 supported the program’s launch, with over $25 billion appropriated by 2025 via annual USDA budgets—e.g., $2.5 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 price risks, funded through federal allocations and producer payments.

Implementation

PLC distributes price 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., 1.1 million farms yearly—and program expansions, adapting to market needs with no set end, though price volatility remains a challenge (web ID: 4).

Related

• Agriculture Risk Coverage (ARC)
• Whole-Farm Revenue Protection (WFRP)

External links

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

Social media

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