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Potential Variability in Commodity Support: Agriculture Risk Coverage and Price Loss Coverage Programs

  • by David Boussios and Erik O'Donoghue
  • 8/1/2019
  • ERR-267

Overview

This report estimates the potential range of the Government’s cost for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs over the next 10 years for the three largest covered commodities—corn, soybeans, and wheat. Simulating program costs at both the county and national levels indicates program expenditures could vary widely due to uncertainty in commodity markets.

For more detail on how commodity programs were affected by the most recent Farm Bill, see Agriculture Improvement Act of 2018: Highlights and Implications.

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