Rural Money: WASDE Report Adjustments Could Lower ARC and PLC Payments for Some Crops

Rising corn and soybean prices may lower expected payments for producers

PARKER, COLORADO (RFD News) — April’s WASDE Report is offering an updated look at marketing year average prices for major crops and what that could mean for Agriculture Risk Cover (ARC) and Price Loss Coverage (PLC) payments later this year.

Farm CPA Paul Neiffer joined Thursday’s Market Day Report to break down how those updated numbers could impact 2025 payments.

“We’re seeing an upward revision in corn and soybean prices,” Neiffer explained. “So the corn payment is now maybe in that $2 billion-$3 billion range. Maybe even a little bit less, and as long as we continue to see an improvement in corn and soybean prices, we’re going to see that estimated ARC and PLC payment for corn and soybeans continue to drop. We’re definitely seeing a drop.”

Neiffer says higher corn prices could significantly reduce PLC payments.

“If we go 25 cents higher, our PLC payment is basically going to be zero. So now, we still have some ARC because there’s going to be pockets in the country where the yields were lower than the normal.”

He says wheat could see stronger payments compared to other crops.

Neiffer also noted that tax season went smoothly overall, with more refunds among typical filers, though it was not particularly strong for farmers.

Related Stories
The Biden Administration launched the Increasing Land, Capital, and Market Access (ILCMA) program in 2023 to help underserved farmers facing barriers to land ownership.
Farm CPA Paul Neiffer provided guidance on navigating the R&D tax credit, emphasizing record-keeping, eligibility, and maximizing potential savings as crop margins remain the key pressure point for farmers.
Higher machinery costs are raising per-acre production expenses.
ASFMRA’s Tony Toso joins us with an update on California farmland values, ongoing market uncertainty, and key discussions shaping agriculture in the Golden State.
Corn and soybean shipments continue to move at a steady pace as spring trade flows develop.
Tony Adkins with Specialty Risk Insurance addresses current market challenges for farmers and ranchers and offers strategies to help producers navigate risk.

Knoxville native Neal Burnette-Irwin is a graduate from MTSU where he majored in Journalism and Entertainment Studies. He works as a digital content producer with RFD News and is represented by multiple talent agencies in Nashville and Chicago.


LATEST STORIES BY THIS AUTHOR:

State leaders say the program continues to build the next generation of farmers and producers
Researchers say new technology will continue to drive innovation in forest operations.
Nearly 50,000 cattle impacted as producers search for feed and recovery options
Education efforts give visitors a closer look at dairy farming at the Rodeo Austin Livestock Show with the help of a cute cow named Lucy.
Texas Farm Bureau intern Jazmine Gutierrez-Davila uses her background and bilingual skills to connect kids to agriculture while attending Rodeo Austin’s Livestock Show.
New partnership focuses on rebuilding habitat for quail across the south