Analysis of ARC and PLC Payment Structures for 2025

This technical report discusses the payment structures for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2025 corn and soybean crops. It outlines the effective reference prices for PLC, which are set at $4.26 for corn and $9.66 for soybeans, and the Olympic Average prices for ARC, which are $5.03 for corn and $12.17 for soybeans. The report explains that lower prices and yields could lead to ARC payments exceeding PLC payments, although farmers should anticipate minimal payments without significant decreases in prices and yields. The document highlights the enrollment deadline of April 15, 2025, and emphasizes the importance of farmers making informed decisions based on current market conditions. Additionally, it provides examples of potential payment scenarios and stresses the need for farmers to develop comprehensive revenue risk management plans that incorporate both programs, alongside crop insurance and other financial tools.