2014 Farm Act Agriculture Risk Coverage, Price Loss Coverage, and Supplemental Coverage OptionPrograms' Effects on Crop Revenue. Report Summary.

摘要

The structure of U.S. agricultural commodity support changed significantly under the 2014 Farm Act. The new programs—in particular, Price Loss Coverage (PLC), Supplemental Coverage Option (SCO), and Agriculture Risk Coverage (ARC)—have linkages with each other and with the pre-existing Federal Crop Insurance (FCI) program. (In this report, the term “ARC” refers to the most popular version of ARC (ARC-County), which is an areabased, rather than individual-based, commodity program.) While PLC builds on the old Countercyclical Payment program, SCO and ARC are known as “shallow loss” programs, covering losses typically not covered by the “deep loss” FCI program. Understanding these new programs and how the available combinations of programs can affect crop revenue provides information on agricultural producers’ enrollment decisions, the programs’ impact on producers’ risk and revenues, and expected program costs.