Price Loss Coverage
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
The Price Loss Coverage program (PLC) is carried over from the 2014 Farm Bill.
Eligibility
Eligible Applicants
- Other
Beneficiaries
- Other
PLC provides payments to eligible producers on farms enrolled for the 2019 through 2024 crop years.
How to Apply
Award Procedure
PLC program payments are issued when the effective price of a covered commodity is less than the effective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity. Producers receive their PLC payments after October 1 following the end of the 12-month marketing year for the covered commodity as applicable.
Decision Timeline
- Approval: From 15 to 30 days
- Appeal: From 15 to 30 days
Approval of payments depends on farmer compliance with conservation and wetland provisions.
Program details & compliance
Description
The PLC program provides income support through price loss payments to eligible producers when the effective price for a covered commodity falls below its effective reference price.
Mission Categories
Primary: Agriculture Stabilization and Conservation
Use of Funds
Allowed Uses
The PLC yield for covered commodities on the farm is equal to the counter-cyclical payment yield established for each covered commodity on the farm that was effective on September 13, 2013, unless the PLC yield is updated.
Required Documentation
It is understood and agreed that producers on a farm may participate in the program only by enrolling in a contract that is consistent with the election previously made for the farm and covered commodities of that farm. Election is not enrollment and the election that applies to a farm and the covered commodities of a farm applies without regard to whether or not producers choose to enroll the farm or not. Enrollment is required each and every contract year.