Farmland Acre Reallocation | Ready, Set, Go!

arc vs. plc pros and cons  Farmland Acre Reallocation | Ready, Set, Go! arc vs

Allocating Base acres to the highest returns is a key consideration for farmers and producers

As the era of direct payments has gone away, the new era of ARC (agricultural risk coverage) and PLC (price loss coverage) take shape. Producers across the country now have the opportunity to reallocate their base acres under the new Farm Bill. As we outlined in a previous post, Dr. Chris Hurt from Purdue Agricultural Economics points out the importance of allocating your base to the highest returning crops and under what conditions you should consider ARC vs. PLC (the pros and cons).

Who can reallocate base acres?

Only Land Owners

UNLESS there is a crop share arrangement with the tenant, in which case the tenant is also considered a producer.

What is the next step?

If you didn’t attend the recent USDA/Purdue University/Farm Credit educational session, you might be able to catch one in a different city. (but we know most of you are in the field now). As risk management gains momentum for producers of all sizes, lean on the experts that you trust to help guide decisions for your operation.

The USDA & FSA have created several online tools and resources that are very helpful. These tools allow the farmer/producer to enter information and see projections about how ARC and PLC affect payments given a variety of outcomes or scenarios.

The new tools are now available at

Contact your Local FSA Agent, their expertise and training is the most valuable.


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