Zulauf and Schnitkey say corn could see a $79 an acre payment under ARC and $26 an acre under PLC under USDA’s average prices. Rice would see $60 an acre from PLC and nothing from ARC. Sorghum would get $32 from PLC and $23 from ARC.
Corn, long-grain rice and sorghum are the most likely of the crops in the farm program to generate a subsidy payment because of low market prices, say economists Carl Zulauf of Ohio State University and Gary Schnitkey of U-Illinois. “Payments are far from certain,” they write at farmdoc daily, “if prices strengthen due to lower production or higher demand.” Their calculations, an update of an earlier blog, are based on USDA’s estimates of season-average prices and yields nationwide. The new Agriculture Risk Coverage plan is more likely to trigger a payment than the Price Loss Coverage plan PLC allows large payouts.
Zulauf and Schnitkey say corn could see a $79 an acre payment under ARC and $26 an acre under PLC under USDA’s average prices. Rice would see $60 an acre from PLC and nothing from ARC. Sorghum would get $32 from PLC and $23 from ARC.