"One of the biggest changes farmers will see is the elimination of the longstanding direct and countercyclical payments system. Instead, lawmakers decided to offer farmers a more robust insurance and revenue protection system.
Part of what makes farmers' revenue protection program decisions so important is that farmers are locked into their enrollment decisions for the five-year life of the farm bill, which runs through 2018.
The programs they'll be offered:
- Price Loss Coverage (PLC), a price protection program that triggers payments when market year average prices fall below target levels, which are called reference prices.
- Agricultural Risk Coverage County (ARC-C), a revenue protection program that triggers payments when the county revenue per acre falls below a benchmark revenue guarantee per acre set for the county.
- Agricultural Risk Coverage Individual (ARC-I), a revenue protection program that triggers payments when there is a revenue-per-acre shortfall on the individual farm that falls below a benchmark revenue guarantee per acre for that farm."