By Andi Anderson
Farmers have until December 11, 2026, to make an important crop program decision for the 2026 crop year. Producers can either enroll individual crops in Agriculture Risk Coverage County Coverage (ARC-CO) or Price Loss Coverage (PLC), or enroll all covered commodities on an FSA farm in Agriculture Risk Coverage Individual Coverage (ARC-IC).
ARC-IC is different from ARC-CO because it is based on the revenue performance of the entire farm rather than county-level crop revenue. The program provides support when a farm’s actual revenue falls below a guaranteed level. Recent program updates increased the ARC-IC guarantee to 90% of benchmark revenue and raised the payment cap to 12% of benchmark revenue. These changes improve the chances of receiving payments and may increase payment amounts when losses occur.
The ARC-IC payment calculation follows three main steps. First, benchmark revenue is determined using farm yields and commodity prices from 2020 through 2024. Second, actual farm revenue is calculated using 2026 yields and marketing year average prices. Third, a payment may be triggered if actual revenue falls below the guarantee level. Payments are made on 65% of the farm’s total base acres.
Several differences exist between ARC-IC and ARC-CO. ARC-CO uses county yields and pays on 85% of base acres, while ARC-IC uses farm-certified yields and pays on 65% of base acres. ARC-IC also combines all covered commodities on a farm into a single revenue calculation, whereas ARC-CO evaluates crops separately.
ARC-IC may be especially attractive in certain situations. Farms that experienced localized losses from drought, flooding, hail, or other weather-related events may benefit because the program measures farm-level revenue rather than county performance. The option may also be useful for farms that had all intended covered acres approved for prevented planting. In such cases, actual revenue can be significantly reduced, increasing the possibility of a payment.
Farms with consistently higher yields than county averages may also find ARC-IC worth evaluating. In addition, producers planting fruits, vegetables, or wild rice on base acres may benefit from the program’s more flexible acreage rules.
Before making a final decision, farmers should compare expected ARC-IC payments with possible ARC-CO and PLC payments for their farms. Reviewing farm yields, planted acreage, and revenue expectations can help determine which program offers the strongest protection for the 2026 crop year.
Photo Credit: gettyimages-nes
Categories: Illinois, Sustainable Agriculture