The Agricultural Act of 2014 provides for payments for covered commodities enrolled in PLC when the marketing year average price is below the reference price.
The 2018 marketing year average price for wheat, barley, oats, and peanuts was announced on August 30, 2019.
PLC payments under the 2014 Farm Bill are subject to 6.8% sequestration. Thus, the net payment rate received for wheat, for example, would likely be 32 cents per bushel (.34 – 6.8% = .32).
Recall that peanuts have a separate $125,000 per person payment limitation. In this case, wheat and peanut PLC payments would accrue under two separate payment limitations.
As a reminder, PLC payments are made on 85% of the base acres for a program commodity. The PLC payment yield for 2014 Farm Bill payments is 90% of the 2008 – 2012 average yield for each farm.
2018 PLC and ARC payments will be made after October 1, 2019.