Looking at Possible ARC and PLC Payments for 2016 Crop

Looking at Possible ARC and PLC Payments for 2016 Crop

Here with information about possible PLC and ARC payments for the 2016 crop year is CliftonLarsonAllen Principle and Farm CPA Today blogger Paul Neiffer

Neiffer: "For the 2016 wheat crop for the Pacific Northwest, for those farmers that elected ARC payments, they are very likely to get a payment very similar to what they received in 2014 and 2015 crop with the increase in the benchmark price. Even though the crop was a little bit higher yield, the NYMA average price of approximately $3.80 is going to drive that price down so low that they're going to get the maximum payment which is again going to be very similar to the last couple years. For others — like those in Colorado — ARC payments are again likely to be at the maximum amount. Where Colorado is a little different than the Pacific Northwest, in that wheat growers back there elected to PLC payments and you're likely to get about $1.50 per bushel times your PLC yield. A lot of farmers back there they could very easily be looking at $50 to $100 per acre on PLC payments. The ARC payment is likely to be down in that $20 to $30 range. So that is the difference between ARC and PLC."

To read more of Neiffer's informative blog — go to farmcpatoday.com

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