MSU Extension to hold discussion on 2025 Farm Bill commodity program decisions

Jonathan LaPorte<laportej@msu.edu>, Molly Sears<searsmo1@msu.edu> and Alan Ker<keralan1@msu.edu>, Michigan State University Extension - December 23, 2024

Webinar series will help farmers choose which Farm Bill commodity program best fits their farm.

Repeat Farm Bill sessions offer multiple opportunities to learn about program options.

After an extension of the 2018 Farm Bill, farm managers will once again look to choose between Price Loss Coverage (PLC) and Agricultural Loss Coverage (ARC) for the 2025 production year. Deciding which program will offer the best risk protection for your farm can seem a bit complex. To aid you in making your Farm Bill decision, MSU Extension is hosting a series of webinar programs as part of the Farm Policy and Risk Management Series.

The first session will take place Tuesday, January 21 at 1 p.m. and the second session on Tuesday, February 11 at 6:30 p.m. Historically presented as “Farm Bill Program and Crop Insurance Decisions – What Fits Your Farm,” these repeat sessions will help you explore your options for 2025 Farm Bill commodity programs. MSU Extension experts will provide information on current policy updates, program statistics and payments from 2024 will also be highlighted.

There are two primary decisions to make for the 2025 Farm Bill commodity programs. The first choice is between Agricultural Risk Coverage - County (ARC-CO) and Price Loss Coverage (PLC). ARC-CO provides revenue-based payments when farm revenue falls below a coverage guarantee level. The PLC program provides price-based payments when prices are less than a reference price.

The second decision point is considering how the Supplemental Coverage Option (SCO) insurance policy ties-in to the choice between ARC-CO and PLC. If chosen, the premium-based option of SCO limits your Farm Bill program choice to PLC. However, depending on your FSA farm’s base acres and your planting intentions, SCO with PLC may offer potentially higher risk protection than ARC-CO.

Updated for the 2025 production season, the MSU Farm Bill Analyzer decision tool will also be returning for the webinar sessions. Using the decision tool, speakers will examine potential risk scenarios you may experience in 2025. With those scenarios in mind, the analyzer identifies which Farm Bill program will provide the best protection and how a combination of SCO & PLC compares to ARC-CO.

NOTE: In order to make the most use of this tool, producers are encouraged to meet with their crop specialist/insurance agent to discuss and obtain estimated premiums and payments for an SCO insurance option. Additional resources for calculating estimates are also provided within the analyzer. These estimates are not calculated within the analyzer itself.

The Farm Policy and Risk Management Series is a free program presented by Michigan State University Extension. To participate, registration is required. To register today, visit: https://events.anr.msu.edu/fprms/.

For the latest information on the Farm Bill, also visit the MSU Farm Bill website.

This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).