With rice prices predicted to remain challenging for the balance of this marketing year, many have asked about triggers for the Agricultural Risk Coverage program (ARC) and Price Loss Coverage program (PLC) for temperate japonica rice. Below is a brief outline of each program and relevant triggers. 

ARC

ARC payments are calculated by multiplying the difference between the county guarantee and the actual county crop revenue by 85% of the base acres of the covered commodity. The county guarantee is based on historical data and market conditions. 

ARC payments are issued when a farm’s actual revenue is less than the county guarantee.

PLC

The 2018 Farm Bill has a clause called the Effective Reference Price.  It takes a five-year Olympic average of our temperate japonica prices.  Because of this, the 2024 effective PLC price trigger is $19.90 for the 2024 season. 

Please note all payments will likely be subject to sequestration, which in 2024 was 5.7%. Payments will be available after marketers report on final prices, no earlier than October 2025. 

In addition, we would direct you to the Kelleher Tool on www.calricenews.org at the bottom of the first page for a spreadsheet to assist you with your individual calculations – just make sure you enter the current data. 

2025 Crop Year Enrollment

Enrollment for ARC and PLC for the 2025 crop year is currently open. According to USDA, if an election is not submitted by the deadline of April 15, 2025, the election defaults to the election for crops on the farm from 2024. 

Farmers have the option to annually select which program to enroll in on a crop-by-crop basis for PLC or ARC-County. Selecting ARC-Individual requires the whole farm be enrolled in that program. 

More information is available from USDA here.

2025 Effective Reference Prices are available here.

Producers are strongly encouraged to sign up before March 14, when government funding through the current continuing resolution expires. 

For more information on the Rice Footprint, contact the CRC’s President & CEO, Tim Johnson, at tjohnson@calrice.org.