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A CRS primer explains the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs created by the 2014 farm bill. It describes how producers chose between PLC and ARC for the 2014 to 2018 crop years, with payments decoupled from production.
These income-support programs can keep acreage in production when prices fall, which affects medium-term supply of corn, soybeans and wheat. The article describes existing rules and does not signal a new price shock.
everycrsreport.comAug 17, 2017After 1,623 past policy events, CORN moved a median +0.1% over 5 sessions (51% higher; middle half -1.4% to +1.5%), and +0.4% over 20.
After 1,905 past policy events, SOY moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.
After 1,019 past policy events, WHEAT moved a median -0.1% over 5 sessions (49% higher; middle half -1.7% to +1.5%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
