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Eligible farm operators have from now until March 15 to enroll in the 2023 farm program at local U.S. Department of Agriculture Farm Service Agency offices. Eligible cops include corn, soybeans, wheat, oats, barley, grain sorghum, long grain rice, medium/short grain rice, temperate japonica rice, seed cotton, dry peas, lentils, large and small chickpeas, peanuts, sunflower seed, canola, flaxseed, mustard seed, rapeseed, safflower, crambe, and sesame seed.

Producers can choose between the price-only Price Loss Coverage (PLC) and revenue-based Ag Risk Coverage (ARC) program choices for the 2023 crop production year. The ARC program choice includes both the countyyield based ARC-CO program choice (which is most popular) and the ARCIC program, which is based on farmlevel yields. If no choice is made, the 2022 farm program choice will remain in place for 2023.

Crop base acres for 2023 will remain at the same levels as 2019-2021 for all crops on most farms. The only adjustments in base acres will be for crop acres added via land purchases; or land rental agreements; or acres no longer eligible for farm program payments. The 2023 farm program yields on individual FSA farm units, which were last updated in 2020, will be used to calculate potential PLC payments. The ARC-CO benchmark yields for 2023 are based on the “olympicaverage” Risk Management Agency (RMA) county average yields for the 2017 to 2021 crop years. The national market year average price for those same years is averaged to calculate the 2023 benchmark price for the ARC-CO and ARC-IC programs. All potential ARC-CO payments will be based on data for the county an FSA farm unit is located in.

Calculation formulas, etc. for the PLC, ARC-CO and ARC-IC programs remain the same as in previous years. PLC payments for 2023 will be made if the final market year average price for 2023 falls below the reference price for a given crop. ARC-CO payments for 2023 will be made if the final county revenue for the year (county yield multiplied by the final 2023 market year average price) falls below the 2023 benchmark revenue for a given crop. Calculations

FARM PROGRAMS for the ARC-IC proBy Kent Thiesse gram are the same as for ARC-CO, MARKETING except ARC-IC uses farm-level yield data and considers all crops on a farm unit together for calculation of potential payments in a given year. PLC and ARC-CO payments are paid on 85 percent of crop base acres, while ARCIC payments are paid on only 65 percent of base acres. Key points to remember about the 2023 Farm Program decision The 2023 reference prices for the PLC program are corn, $3.70/bu.; soybeans, $8.40/bu.; wheat, $5.50/bu. The ARC-CO and ARC-IC benchmark prices for 2023 are corn, $3.98/bu.; soybeans, $9.57/bu.; wheat, $5.50/bu. Final 2023 market year average prices for corn and soybeans will be calculated from Sept. 1, 2023 to Aug. 31, 2024. As a result, the current upswing in crop prices may not necessarily impact final 2023 farm program payments. Final 2023 market year average prices for wheat and other small grains will be calculated from June 1, 2023 to May 31, 2024. PLC payment per crop base acre reference price minus the 2023 market year average price multiplied by the FSA program yield times 85 percent. (If the final 2023 market year average price is higher than the reference price, there is no PLC payment.) ARC-CO benchmark revenue guarantee per acre is the county benchmark yield multiplied by the benchmark price times

See THIESSE, pg. 25

2023 Farm Program Decision Table

A Guide to aide in Farm Program Decisions for the 2023 crop year

Reasons to Choose Reasons to Choose

PRICE LOSS COVERAGE (PLC)

AG RISK COVERAGE (ARC-CO) CROP (Price only) (Yield and Price using County Yields) • Think that the final market year average • Think that the final market year average corn price will be below corn price will above $3.70 per bushel for 2023-24. (*) $3.70 per bushel for 2023-24. (*) 2022-23 USDA MYA Est. = $6.80/Bu. Final MYA price was $3.70/Bu. 2021-22 Final MYA Price = $6.00/Bu. or lower from 2014-2019. 2020-21 Final MYA Price = $4.53/Bu. (MYA price will be above $3.70 for 2022-23.) Corn • Want Price protection from $3.70 to • MYA Price where ARC-CO Payments would $2.20 per bu. (PLC has a higher max. begin at various percent of County BM Yield: payment than ARC-CO). 100% BM Yield = $3.43/bu. • Not worried about a significant yield 90% BM Yield = $3.81/bu. drop below the County benchmark yield. 80% BM Yield = $4.28/bu. • Want to utilize SCO insurance in 2023. 70% BM Yield = $4.89/Bu. • Think that the final MYA soybean price • Think that the final MYA soybean price will will be below $8.40 per bu. for 2023-24 (*) be above $8.40 per bu. for 2023-24. (*) 2022-23 USDA MYA Est. = $14.00/Bu. Final MYA price was above $8.40/bu. 2021-22 Final MYA Price = $13.30/bu. from 2014 to 2021. 2020-21 Final MYA Price = $10.80/bu. (MYA price will be above $8.40 for 2022-23.) Soybeans • Want price protection from $8.40 to • MYA Price where ARC-CO Payments would $6.20 per bu. (PLC has higher max. begin at various percent of County BM Yield: payment than ARC-CO). 100% BM Yield = $8.23/bu. • Not worried about a significant yield 90% BM Yield = $9.15/bu. drop below the County benchmark yield. 80% BM Yield = $10.29/bu. • Want to utilize SCO insurance in 2023. 70% BM Yield = $11.76/bu. • Think that the final MYA wheat price will • Think that the final MYA wheat price will be below $5.50 per bushel for 2023-24. (**) be above $5.50 per bushel for 2022. (**) 2022-23 USDA MYA Est. = $9.20/bu. Final MYA price was $5.50/bu. 2021-22 Final MYA Price = $7.63/bu. or lower from 2015 to 2020. 2020-21 Final MYA Price = $5.05/bu. (MYA price will be above $5.50 for 2022-23.) Wheat • Want price protection from $5.50 to • MYA Price where ARC-CO Payments would $3.38 per bu. (PLC has higher max. begin at various percent of County BM Yield: payment than ARC-CO). 100% BM Yield = $4.73/bu. • Not worried about a significant yield 90% BM Yield = $5.26/bu. drop below the County benchmark yield. 80% BM Yield = $5.92/bu. • Want to utilize SCO insurance in 2023. 70% BM Yield = $6.76/bu. (*) 2023-24 MYA price for corn and soybeans is calculated from Sept. 1, 2023 to Aug. 31, 2024 and finalized on Sept. 30, 2024. (**) 2023-24 MYA price for wheat and small grains is calculated from June 1, 2023 to May 31, 2024 and finalized on June 30, 2024. Reasons to choose ARC-IC (Price and yield using farm yields) • FSA farm units with a single crop planted in 2023 and could have very low yields in 2023 compared to five-year (2017-21) average RMA yields. • FSA farm units with potential for low yields in 2023 in a county not likely to receive 2023 ARC-CO payments. Remember: All crops raised on an individual FSA farm unit are factored together for ARC-IC revenue calculations. All FSA farm units enrolled in ARC-IC in a state are calculated together for IRC-IC determination.