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31
Oct
2017
USDA Announces 2016 Rice PLC Payment Rates
Author: Scott Stiles, Extension Economist

On October 30, 2017 the USDA Farm Service Agency (FSA) announced the 2016 Price Loss Coverage (PLC) payment rates for Long Grain and Medium Grain Rice.  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 2016 PLC payment rates.

 

Item

unit

Long Grain

Medium Grain

Reference Price

$/bushel

$6.30

$6.30

National Loan Rate

$/bushel

$2.925

$2.925

2016/17 Marketing Year Average Price (MYA)

$4.338

$4.545

Higher of Loan Rate or MYA Price

$/bushel

$4.338

$4.545

2016 PLC Payment Rate

$/bushel

$1.962

$1.755

 

2016 ARC-CO payments as well as PLC payments are impacted by the Federal Budget sequester. As was the case for 2014 and 2015 payments, ARC-CO and PLC payments will be reduced 6.8% due to the sequester requirement contained in Congressional budgeting legislation from 2011. Accounting for the sequester reduction in the payment rates shown above, the net PLC payment for Long Grain would be $1.83 per bushel.  The net PLC payment for Medium Grain would be $1.64 per bushel.   

 

Net PLC Payment Rates Per Bushel, Rice.*
 

2014

2015

2016

Long Grain

.88

$1.22

$1.83

Medium Grain

.00

$1.17

$1.64

*payment rates reduced by 6.8%.

 

The complete news release for 2016 PLC payment rates for Long Grain and Medium Grain rice from the USDA Farm Service Agency can be downloaded at this link: arcplc47


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