USDA Issues Safety-Net Payments to New York State Farmers Facing Market Downturn

SYRACUSE – USDA New York Farm Service Agency (FSA) Executive Director, James Barber announced that approximately 11,500 New York State farms who enrolled in the new safety-net programs established by the 2014 Farm Bill will soon begin receiving financial assistance for the 2014 crop year.

The programs, known as Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), are designed to protect against unexpected drops in crop prices or revenues due to market downturns.

“These new safety-net programs provide help when price and revenues fall below normal, unlike the previous direct payment program that provided funds even in good years,” said Barber. “For example, 53 counties in New York State harvest corn and producers have experienced a 30 percent drop in price below the historic benchmark price established by the ARC-County portion of the program. ARC protects against lower revenue from a combination of price and yield. “Payments by county can vary because average county yields will differ.”

For corn growers who chose the PLC portion of the program, the average price for the marketing year was equal to the statutory reference price established for PLC, so financial assistance did not occur.

Statewide, the majority of farms participated in the ARC-County portion of the ARCPLC program.

More details on the price and yield information used to calculate the financing assistance from the safety-net programs is available on the FSA website at and

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