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06
Sep
2017
USDA Announces 2016 PLC Payment Rate for Peanuts
Author: Scott Stiles, Extension Economist

On August 30, 2017 the USDA Farm Service Agency (FSA) announced the 2016 Price Loss Coverage (PLC) payment rate for peanuts.  In Arkansas, 99% of peanut base acres are enrolled in Price Loss Coverage.  Arkansas producers harvested 23,000 acres of peanuts in 2016.

 

The Agricultural Act of 2014 (aka 2014 Farm Bill) provides payments for covered commodities enrolled in PLC when the Marketing Year Average price is below the statutory Reference Price.  The PLC Reference Price for peanuts is 26.75 cents per pound. The 2016 Marketing Year Average was determined to be 19.70 cents per pound.  The national Loan Rate for peanuts is 17.75 cents per pound.    The PLC Payment Rate is calculated by subtracting the higher of the Loan Rate or the Marketing Year Average price from the Reference Price.   The table below provides the 2016 PLC payment rate for peanuts.

 

Peanut PLC payments for the 2016 crop are expected to be made in October 2017.  The payment limitation for peanuts is $125,000 per person.  All payments made specifically for peanuts are covered under a separate $125,000 payment limitation and do not count towards the payment limitation of other covered commodities such as rice, corn, wheat and soybeans.

 

The complete news release from the Farm Service Agency can be downloaded at this link:  arcplc43

 

Item

Peanuts

Cents Per Pound

Reference Price

26.75

National Loan Rate

17.75

Marketing Year Average (MYA) Price

19.70

Higher of Loan Rate or MYA Price

19.70

PLC Payment Rate

7.05 = (26.75 – 19.70)


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