US Farm Programs Explained: ARC vs PLC (Farm Bill)

Updated 2026-07-11 · Government programs

US farmers of covered commodities (corn, soybeans, wheat and others) can enrol in one of two safety-net programs through the USDA Farm Service Agency (FSA): Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC). They protect against different risks, and you elect one per commodity. Here is the difference in plain terms.

PLC — protects against low prices

Price Loss Coverage pays when the national marketing-year average price for a covered commodity falls below its effective reference price. If prices crash, PLC pays on your program (base) acres and payment yield. It is the simpler, price-focused option — a good fit if your main worry is a price collapse.

ARC — protects against low revenue

Agriculture Risk Coverage pays when actual crop revenue (yield × price) falls below a benchmark guarantee. It comes in two forms:

• ARC-CO (county): based on county average yield and the national price — the common choice.
• ARC-IC (individual): based on your own farm’s revenue across covered commodities.

ARC helps when a yield shortfall or a moderate price dip cuts your revenue, even if prices don’t fall below the PLC reference.

How to choose and enrol

1. You elect ARC or PLC per covered commodity for the crop year(s) allowed by the current Farm Bill sign-up.
2. Think about your bigger risk: a price crash (lean PLC) versus a revenue/yield shortfall (lean ARC-CO).
3. Enrol at your local USDA FSA office or on farmers.gov before the annual deadline. Keep your base acres and yields on file up to date.

Note: exact reference prices, deadlines and formulas are set by the current Farm Bill — confirm the year’s numbers with FSA.