Given increases in prices since the late summer of 2020, commodity title payments for the 2020 marketing year will be limited. Price Loss Coverage payments are not projected for corn or soybeans, says University of Illinois Extension Agricultural Economist Gary Schnitkey.
“At this point in time you can be pretty sure that corn and soybeans will not make a payment. The 2020/21 market year average prices are likely to be $4.35 for corn and $11.25 for soybeans. Both of those are well above the effective reference prices and there won’t be any PLC payments. You’d need extremely low county yields for either ARC or PLC to make payments on soybeans. While that is a possibility it is not likely for 2020. Wheat will make a payment. Our estimate for the payment rate is 45 cents per base bushel. So, a nice payment for wheat will be coming but corn and soybeans not likely.”
The final calculations have yet to be made. These cannot be completed until USDA tallies the 2020/2021 marketing year season’s average prices and yields for each of the crops. ARC and PLC payments are distributed in the fall of the year.