MANHATTAN — USDA State Farm Service Agency (FSA) Acting Executive Director Terry L. Hawk, announced that approximately 100,989 Kansas farms that enrolled in safety-net programs established by the 2014 Farm Bill will receive financial assistance for the 2016 crop year. The programs, known as Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), are designed to protect against unexpected drops in crop prices or revenues due to market downturns.
“These safety-net programs provide help when price and revenue fall below normal,” said Acting SED Hawk. “Payments to corn, wheat, soybean, and grain sorghum producers are helping provide reassurance to our Kansas farm families who are standing strong against low commodity prices compounded by unfavorable growing conditions.”
Producers in Kansas counties have experienced a significant drop in prices or revenues below the benchmark established by the ARC or PLC program and received payments totaling more than 44 million dollars. Payments related to corn crops made up much of those payments, but there were also payments for wheat, soybeans, grain sorghum, barley, oats, dry peas, and canola. Cash flow from these payments is particularly helpful to farmers and ranchers in counties impacted by natural disasters.
“Payments by county for an eligible commodity can vary because average county yields will differ,” said Hawk.
During the initial program election process in 2014, producers had the option to elect different programs for different crops on the same farm. Statewide, over 61,244 farms elected ARC-County only and 15,341 farms elected PLC, while 24,404 farms have crop elections in both programs. More details on the price and yield information used to calculate the financing assistance from the safety-net programs is available on the FSA website at www.fsa.usda.gov/arc-plc and www.fsa.usda.gov/ks.