ARC-CO Revenue Guarantees Decline Throughout Much of the U.S.

by Brent Gloy

Last week we looked at how benchmark or Olympic average yields have changed since the start of the ARC-CO program.  This week we will examine how ARC-CO revenue guarantees have changed across the country.  Again, we will see that the results differ widely across the country.  Continue reading

ARC-CO Yield Guarantees Increase Across Much of the Country

by Brent Gloy

Direct farm program payments have again become a critical component of net farm income.  In 2016 direct farm program payments are forecast to account for $13 billion of the sector’s $68 billion (19%) of net farm income.  At $5.9 billion the ARC-CO program is by far the largest category of direct farm program payments.

As we have discussed before, the price guarantees of the ARC-CO program have already begun to decline and this decline will likely accelerate for the 2017 crop year.  However, ARC-CO is a revenue based program, so guarantees are also dependent upon county level yield histories.  Given that the U.S. has harvested three very large corn and soybean crops in a row, we thought it would be interesting to see how the county level yields have changed over the course of the program.  Continue reading