The PLC yield update decision is probably the easiest decision you'll have to make for the 2018 Farm Bill. So under the Farm Bill, you have a one time opportunity to update your PLC yields. If you choose to do so, those updated yields apply to your program elections for 2020 through 2023. They don't apply to your 2019 season. You can make this decision of whether or not to update these yields on a commodity-by-commodity basis. So you could update your yields for wheat, but not corn, soybeans, but not wheat, wheat and soybeans, but not corn and so on. These updated yields will be used to determine how much your PLC payments are. And the way that these updated yields are calculated is you'll have your farm yields for every farm number from 2013 to 2017, you'll take an average of those farm yields, and then for corn and soybeans, your updated PLC yield will be 81% of that average. For wheat, it'll be 85.91% of that average. The worst you can do in any given year, suppose you had a catastrophic year or you're unable to prove your yields for a year, the worst you can do in that year is called the plug yield, which is 75% of the county average yield. That's the floor for your yields. You can, you can see in any of those 2013 to 2017 years. You prove these yields, or you can prove these yields with your crop insurance records. And it's a pretty easy decision, if it increases your yields, for the purpose of your PLC payment, you should do it. And you should do it even if for the 2019/2020 seasons, you don't choose PLC because these increased yields will apply for the 2021 season, the 2022 season, and the 2023 season. And based on the market environment in those years, even if our county turns out to be the best program for a given commodity, this year PLC might be, might be the best payment program in the future.
(2) 2018 Farm Bill: PLC Yield Update Decision
From Florencia Colella August 18th, 2020
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