What are farm bill commodity programs?
The commodity title authorizes programs that make payments to producers of covered crops under certain conditions. The best known are Agriculture Risk Coverage and Price Loss Coverage, described on FSA's ARC and PLC page. ERS also explains the structure of crop commodity programs in its farm bill pages.
These programs are administered by FSA, so signing up and payment questions go through your county office.
Pay attention to base acres and payment yields for your farm, which are set by FSA records and are not simply the acres you plant this year. Ask your office how they were set and whether anything on your farm record is out of date.
How do ARC and PLC differ?
In general terms, PLC pays when the market price of a covered commodity falls below a reference price set in law, while ARC pays when revenue falls below a benchmark based on past yields and prices. The key numbers, such as reference prices, rates and benchmarks, come from FSA and change, so use official sources for current values.
Which one fits depends on your crop, your county yields and where prices are likely to land. Many producers use extension tools to compare.
If you rent land, confirm with the landowner who makes the election and how any payment is divided, and put it in writing so there is no question later.
What decisions will I have to make?
Producers typically make an election for each covered commodity on each farm, and in some years must re-enroll or confirm choices. FSA announces enrollment periods. Missing one can mean losing payments or being locked into a default choice.
Decisions involve base acres and yields tied to the farm, so ownership and tenant arrangements matter. Landowners and operators should talk before the deadline.
- Election by covered commodity and farm
- Enrollment periods set by FSA
- Base acres and payment yields
- Landlord and tenant share arrangements
How do payment limits and eligibility affect me?
Commodity payments are subject to rules including payment limits, income limits and the actively engaged in farming requirement. FSA has pages for each, and they are covered in other guides on this site.
If you operate through an entity or multiple partners, ask FSA early how limits apply to your structure.
If your farm has several farm numbers or tracts, ask FSA to walk you through each one, because the details on base acres and yields can differ from tract to tract.
How should I budget for these payments?
Payments often arrive after the marketing year and depend on prices and yields that you do not control. Do not plan operating loan payments around money that may not arrive, and tell your lender how you treat them in your projections.
Run a budget without payments and another with a modest estimate based on official rates. The difference shows how much you rely on them.
What mistakes should I avoid?
Relying on advice from a neighbor without checking your own numbers, missing the enrollment deadline, and not updating FSA when land or operators change are the common ones. Do not pay anyone a percentage to enroll you, since FSA staff will help for free.
Ask your county office for the current enrollment information and use university decision tools such as those from farmdoc daily to compare choices.
How do I compare ARC and PLC for my farm?
Use the decision tools that universities publish, and ask your FSA office for the current reference prices and benchmark information for your farm. Look at your county's recent yields and prices and think about whether you expect prices to be low or revenue to swing.
Remember that the choice is not about picking the program that sounds best, but about which is more likely to fit your crop and county. If you are not sure, ask your extension economist for help with a worksheet.
Write down the election you make and the date, and keep a copy of the signed forms. It helps to understand how marketing-year prices are reported, since the payment calculation is tied to them. Payments usually come after the marketing year ends, which means the cash may arrive many months after the decision was made.
Key takeaways
- Commodity programs pay under price or revenue conditions, and FSA runs them.
- ARC and PLC use different triggers, so compare with your own numbers.
- Know the enrollment period and your base acres.
- Landlords and operators should coordinate before deadlines.
- Budget without counting on payments as certain.
Sources and official links
Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.