UPDATED POST - Will We Hit Maximum ARC-CO payments for the 2024 Crop?

Based on current trends in crop prices, it is likely we will have maximum ARC-CO payments for many crops if the drop in current crop prices continue.

Photo by Waldemar on Unsplash

It has been several years since we saw maximum payments for the major crops for ARC-CO. Based on the current trends in crop prices, we believe there is a good chance that we will see maximum payments for several crops, especially corn.

Let’s review how ARC-CO is determined. We take the Olympic average price and multiply that by the Olympic average yield. Olympic average is the last five years where you throw out the high and low number and take the average of the remaining three numbers.

This result is benchmark revenue. 86% of that number is the guaranteed revenue. Final harvest revenue is final county yield times final MYA price. If final harvest revenue is less than guarantee revenue, then a payment is made.

Let’s look at an example. I currently own some land in Buchanan County, Iowa. The Olympic average yield was 222.46. The Olympic average price is $4.85. When we multiply these two numbers together, we get benchmark revenue of $1,078.93.