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USDA Issues Safety-Net Payments to MI Farmers
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USDA Michigan Farm Service Agency (FSA) Executive Director, Christine White announced that approximately 56,000 Michigan farms that enrolled in the new safety-net programs established by the 2014 Farm Bill have begun receiving financial assistance for the 2014 crop year.


Source: United States Department of Agriculture: Michigan Farm Service Agency

Contact: Greg Todd, 517-324-5110

USDA Issues Safety-Net Payments to Michigan Farmers Facing Market Downturn


USDA Michigan Farm Service Agency (FSA) Executive Director, Christine White announced that approximately 56,000 Michigan farms that enrolled in the new safety-net programs established by the 2014 Farm Bill have begun receiving financial assistance for the 2014 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 new safety-net programs provide help when price and revenues fall below normal, unlike the previous direct payments program that provided funds even in good years,” said SED White. “For example, of the 83 counties in Michigan, many producers harvest corn, soybeans, and wheat, and have experienced a signficant drop in price and/or yield below the historical benchmark established by the ARC program. For growers under the PLC program, the average price for the market year was higher than the historical benchmark established by the programs, so financial assistance did not occur.”

Similarly, the county-based option of ARC protects against lower revenue from a combination of price and yield.

“Payments by county can vary because average county yields will differ,” said SED White. Statewide, 52,443 farms participated in ARC-County and 4,956 farms participated in PLC. 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/mi.