On September 28, 2017 the USDA Farm Service Agency (FSA) announced the 2016 Price Loss Coverage (PLC) payment rates for corn, grain sorghum and soybeans. 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 following table provides the PLC payment rates for corn, grain sorghum, and soybeans.
Given that the PLC Reference Price for corn is $3.70 per bushel and the 2016 Marketing Year Average prices was determined to be $3.36 per bushel (which is higher than the Loan Rate of $1.95), a PLC payment of 34 cents per bushel is available for corn ($3.70 Reference Price – $3.36 MYA = .34/bushel).
For sorghum base enrolled in PLC a payment of $1.16 per bushel is available.
No PLC payment for soybeans is available as the Marketing Year Average price of $9.47 is above the Reference Price of $8.40 per bushel.
Corn and grain sorghum PLC payments for the 2016 crop are expected to be made in October 2017.
The complete news release from the Farm Service Agency can be downloaded at this link: arcplc45