Cover photo for Agricultural Risk / Price Loss Coverage Programs

Agricultural Risk / Price Loss Coverage Programs (ARC/PLC)

Risk Management Agency

Closed March 15, 2022


The ARC Program is an income support program that provides payments when actual crop revenue declines below a specified guarantee level. The PLC Program provides income support payments when the effective price for a covered commodity falls below its effective reference price.

All farm producers with interest in the cropland must make a unanimous election of either ARC-CO or PLC on a crop-by-crop basis; or ARC-IC for all covered commodity base acres on a farm.

Agriculture Risk Coverage-County (ARC-CO)

The ARC-CO program provides income support tied to historical base acres, not current production, of covered commodities. ARC-CO payments are issued when the actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity.

Individual Agriculture Risk Coverage (ARC-IC)

ARC-IC program payments are issued when the actual individual crop revenue for all covered commodities planted on the ARC-IC farm is less than the ARC-IC guarantee for those covered commodities. ARC-IC uses producer’s certified yields, rather than county level yields. ARC-IC payments are dependent upon the planting of covered commodities on the farm.

Price Loss Coverage (PLC)

PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity.



Farmers of 22 covered commodities may elect ARC or PLC coverage: wheat, oats, barley, corn, grain sorghum, long grain rice, medium/short grain rice, temperate japonica rice, seed cotton, dry peas, lentils, large and small chickpeas soybeans, peanuts, sunflower seed, canola, flaxseed, mustard seed, rapeseed, safflower, crambe, and sesame seed.


Broadly speaking, producers will receive a payment based on the difference between the historically expected commodity price, and the actualized price received by a producer each year. The historic benchmark price is determined by which of the ARC or PLC programs are elected.

See the ARC/PLC decision tools below to learn more.


Similar Programs


Release Date

October 18, 2021


March 15, 2022


Risk Management Agency (RMA)

Financial Instrument


Image Credit

fred tromp

Updated March 11, 2022

This information was gathered from public sources. Ambrook is not responsible for or able to affect the results of any financial programs listed, nor are they responsible for any incorrect information that is listed or is on the hyperlinked external sites. All information is subject to change.

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