Agricultural Economics and Agribusiness Extension faculty recently completed a summary of 2019 ARC-CO soybean payments for Arkansas counties. The report can be found at this link: 2019 ARC-CO Payments for Soybeans in Arkansas
As background information, the 2018 Farm Bill allowed Arkansas soybean producers to choose a risk management program from Price Loss Coverage (PLC), Agricultural Risk Coverage by Individual Farm (ARC-I), or Agricultural Risk Coverage by County (ARC-CO).
According to Farm Service Agency data, approximately 80% of U.S. soybean base acres were enrolled in the ARC-CO program for the 2019 and 2020 crop years. Another 6% of soybean base acres were enrolled in the ARC-Individual program and the remaining 14% of base acres went in the Price Loss Coverage (PLC) program.
With the 2019 marketing year average (MYA) prices and county yields for soybeans now finalized, ARC-CO payments have been calculated.
Since the 2019 MYA price was above the PLC reference price of $8.40 per bushel, no PLC payments were triggered for soybeans.
However, eighteen (18) counties in Arkansas were eligible for ARC-CO payments on irrigated soybean base acres and twenty-five (25) counties were eligible for ARC-CO payments on non-irrigated soybean base acres.
ARC-CO payments on irrigated base acres ranged from $7.03 to $54.60 per acre with an average payment of $22.79 per acre. ARC-CO payments on non-irrigated base acres ranged from $6.56 up to $38.82 per acre with an average payment of $19.43 per acre.
The highest ARC-CO payments were generally triggered in counties along the Arkansas and Red rivers—areas that faced significant flooding and planting delays.
Given the weather challenges seen in several counties last year, the ARC-CO program provided some financial assistance in areas that suffered abnormal yield variability in 2019.