By Andi Anderson
The passage of the American Relief Act of 2025 extended the 2018 Farm Bill, requiring farmers to decide between Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) for another year. To assist with this decision, the 2025 Farm Bill What-If Tool, an updated Microsoft Excel-based calculator, has been released.
ARC and PLC Program Choices
Farmers can choose between:
- Price Loss Coverage (PLC): Provides price support if the market price drops below the set reference price. Payments apply to 85% of historical base acres.
- Agriculture Risk Coverage at the County Level (ARC-CO): Triggers payments if actual revenue (price × yield) falls below 86% of the county benchmark revenue.
- Agriculture Risk Coverage at the Individual Level (ARC-IC): A farm-level program that combines multiple crops for a weighted revenue calculation. Payments apply to 65% of base acres.
2025 Price and Benchmark Comparisons
The 2025 effective reference prices are:
Corn: $4.26 per bushel
Soybeans: $9.66 per bushel
Wheat: $5.56 per bushel
The 2025 ARC benchmark prices are:
Corn: $5.03 per bushel
Soybeans: $12.17 per bushel
Wheat: $6.72 per bushel
Because ARC benchmark prices are higher than PLC reference prices, ARC-CO is expected to provide higher payments under most price and yield conditions. However, PLC may be better for corn and wheat at very low prices.
Decision Deadline and Strategy
Farmers have until April 15, 2025, to select their program. Waiting until closer to the deadline may provide more market information, particularly for wheat farmers.
Categories: Illinois, Government & Policy