In the face of a struggling farm economy, the U.S. Department of Agriculture announced Oct. 4 that it will make $7 billion in risk management program payments to many of the 1.7 million farms enrolled in either Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs from the 2015 crop year.
National Corn Growers Association President Wesley Spurlock said that these programs are more important than ever to help farmers manage risk and weather difficult economic times.
“Farmers are struggling. This is a shot in the arm when they need it most,” says Spurlock. “We advocated for a shift to a market-based program that kicks in only when needed. Now is that time.”
According to USDA calculations, these payments will account for 10 percent of 2016 projected net farm income. Net farm incomes have declined 55 percent during the past two years, and most farms will be operating at a loss in 2016.
“These payments will help provide reassurance to America’s farm families, who are standing strong against low commodity prices,” says Agriculture Secretary Tom Vilsack.
