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USDA Announces $4 Billion in Safety-Net Payments to Farmers Amid Commodity Market Downside

Starting October 28, 2015, the USDA Farm Service Agency (FSA) will begin making payments to farmers to cover losses from the 2014 crop year. Approximately one-half of farmers with covered commodities such as corn, soybeans and variety of other crops will start to receive payments as part of the 2014 Farm Bill program.

For the first time, farmers, under the current Farm Bill only recieve payments when markets or poor crop years occur. The old direct payment program triggered payments regardless of the quality of the crop or price, the new program called ARC or PLC triggers a government payment only when commodity markets or severe weather cause unexpected or sustained drops in the price per bushel or farm revenues.

For complete details from the USDA, including a FAQ section, visit : www.fsa.usda.gov/arc-plc.

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