Midwestern farmers could collect an average $50 an acre on corn and soybean land that is eligible for subsidies on this year’s crops, says economist Gary Schnitkey of U-Illinois. The payments through the new Agricultural Risk Coverage (ARC) program, intended to shield crop revenue from low prices and poor yields, will be made after Oct. 1, 2016. The most popular form of ARC triggers subsidy payments when county-wide revenue from a crop is below the guaranteed level.
Subsidy payments “appear likely for 2015” crops, says Schnitkey at farmdoc daily, based on current estimates that the average corn price will be the lowest in six years and soybean prices the lowest in nine years. The maximum payment of $75.99 an acre for “base” acres of corn “could occur in many counties,” he said, and soybean payments of $30 an acre appear within reach. “An average of $50 per acre across corn and soybean base acres seems reasonable at this point,” said Schnitkey. Of course, yields vary among counties so some areas may not qualify for payments while others get the maximum.