Compare Agriculture Risk Coverage (ARC-CO) and Price Loss Coverage (PLC) program payments to choose the best Farm Bill safety net for your operation.
The two main farm safety net programs under the Farm Bill — Agriculture Risk Coverage at the County level (ARC-CO) and Price Loss Coverage (PLC) — protect farmers in different ways. ARC-CO triggers payments when actual county crop revenue falls below a benchmark revenue based on recent Olympic average yields and prices. PLC triggers when the national Marketing Year Average (MYA) price falls below the statutory reference price, regardless of yield.
This ARC vs PLC Comparison Calculator estimates payments under both programs for a given crop year scenario so you can see which election would produce a larger payment. ARC-CO is better when yields are the primary risk or when prices remain above the reference price but revenue dips. PLC is better when prices collapse below the reference price, especially if yields are normal.
Farm operators must elect ARC-CO or PLC for each covered commodity on each Farm Service Agency farm number. Making the right election depends on your outlook for prices and yields. This calculator helps quantify the trade-offs.
The ARC/PLC election can mean tens of thousands of dollars in payments or zero, depending on market conditions. Many farmers pick a program without running the numbers, leaving money on the table. This calculator lets you model different price and yield scenarios to see which program pays more under each condition, guiding a smarter election decision.
PLC payment/ac = max(0, Reference price − MYA price) × PLC yield × 0.85; ARC-CO payment/ac = max(0, ARC benchmark × 0.86 − Actual county revenue) (capped at 10% of benchmark); Both × Base acres × 85% payment factor
Result: PLC: $25,500 vs ARC-CO: $31,552
PLC: ($3.70 − $3.30) × 150 bu × 85% = $51.00/ac × 500 base ac = $25,500. ARC-CO: Guarantee = $680 × 86% = $584.80. Shortfall = $584.80 − $530 = $54.80/ac. Cap = $680 × 10% = $68 (not binding). Payment = $54.80 × 500 × 85% = $23,290. In this scenario, PLC pays more. (Results vary by year and commodity.)
ARC-CO and PLC protect against different types of risk. ARC-CO is a revenue-based program that triggers when county-level crop revenue (yield × price) falls below a moving benchmark. It is most valuable when revenue dips due to either price or yield declines, as long as the national price remains above the PLC reference price.
PLC is a price-based program that triggers when the national Marketing Year Average price falls below a fixed reference price. It is most valuable in years of widespread price collapse, regardless of what county yields do. PLC payments can be very large in low-price years because there's no revenue offset — the full per-bushel price gap times the PLC yield is paid.
The best election depends on your price and yield outlook. If you expect prices to stay above the reference price but worry about local yield risk, ARC-CO is favored. If you expect potential for prices below the reference price (especially with normal yields), PLC is typically better.
ARC-CO also has a 10% payment cap — maximum payment per acre is 10% of the benchmark revenue. This cap limits ARC-CO payments in severe loss years, while PLC has no similar percentage cap.
PLC can be paired with SCO (Supplemental Coverage Option) crop insurance, which provides county-based coverage between your individual insurance deductible and 86% of expected county revenue. ARC-CO cannot be paired with SCO. This PLC+SCO combination sometimes provides better total protection than ARC-CO alone.
The ARC-CO benchmark is the Olympic average of the previous 5 years of county crop revenue (county yield × national MYA price, dropping the highest and lowest years). It represents "normal" county revenue. The guarantee is 86% of this benchmark.
The PLC reference price is set by Congress in the Farm Bill and represents a price floor. For corn, it's currently $3.70/bu; for soybeans, $8.40/bu; for wheat, $5.50/bu. The effective reference price can adjust upward (but not below the statutory level) based on 85% of the Olympic average MYA price.
Yes. You can elect ARC-CO for corn and PLC for soybeans (or vice versa) on the same FSA farm number. However, if you choose ARC-CO for a crop, it applies to all base acres of that crop on that farm number. Consider each commodity's price and yield outlook separately.
Both ARC and PLC payments are calculated on 85% of base acres, not 100%. This is a sequestration-related adjustment required by law. So if you have 500 base acres, payments are calculated on 425 effective acres.
ARC-IC (Individual Coverage) uses your farm's individual revenue instead of county averages. It covers all commodities on a farm together, not separately. ARC-IC is less commonly elected because it requires detailed individual yield documentation and typically produces smaller payments due to the diversification across crops.
ARC and PLC payments for a crop year are calculated after the Marketing Year Average price is finalized (typically October-January following harvest). Payments are issued shortly after, usually in December-January for corn and soybeans. This timing means the payment arrives well after the crop year ends.