Agriculture Risk Coverage Program

 

The ARC program is similar to the previous Direct and Counter-cyclical Payments Program (DCP) and the Average Crop Revenue Election (ACRE) which were repealed by P.L. 113-79. ARC provides income support to eligible producers of covered commodities.

General information about this opportunity
Last Known Status
Active
Program Number
10.113
Federal Agency/Office
Agency: Department of Agriculture
Office: Farm Service Agency
Type(s) of Assistance Offered
Direct Payments for Specified Use
Program Accomplishments
Not Applicable.
Authorization
The 2014 Farm Bill, Title 1, Section 1115, Public Law 113-79.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
An eligible producer is eligible to enter into a contract if 1) the owner of the farm has an ownership of a crop and assumes all or a part of the risk producing a crop that is commensurate with that claimed ownership of the crop; 2) a producer, other than the owner, on a farm with a share-rent lease for such farm, regardless of the length of the lease, if the owner of the farm enters into the same contract; 3) a producer, other than an owner, on a farm who rents such farm under a lease expiring on or after September 30 of the year of the contract in which case the owner is not required to enter into the contract; 4) a producer, other than an owner , on a farm who cash rents such farm under a leasing expiring before September 30 of the year of the contract; 5)An owner of an eligible farm who cash rents such farm and the lease expires before September 30 of the year of the contract, if the tenant declines to enter into a contract for the applicable year.
Beneficiary Eligibility
ARC provides payments to eligible producers on farms enrolled for the 2014 through 2018 crop years.
Credentials/Documentation
When required, the Farm Service Agency (FSA), may require documentary evidence supporting any certification of yield or production be provided to the county committee of the county where the farm is administratively located. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Not Applicable
Award Procedure
ARC is a revenue-based program that is designed to cover a portion of a farmer's out-of-pocket loss when crop revenues fall below the guarantee, with the benchmark revenue based on either county level for ARC-CO or the individual farms historic revenue for ARC-IC. ARC-CO payment calculation is based on base acres including any base acres attributed to a covered commodity from generic base acres based on P&CP or eligible subsequently planted crop acreage. Payments are triggered when actual county crop revenue of a covered commodity is less than the ARC-CO guarantee for the covered commodity. ARC-IC payments are triggered when the actual crop revenue, averaged across all covered commodities planted or eligible subsequently planted crop acreage on the ARC-IC farm, is less than ARC-IC guarantee, averaged across those covered commodities planted or eligible subsequently planted crop acreage on the farm.

Producers receive their ARC payments after October 1.
Deadlines
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
From 15 to 30 days. Approval of payments depends on farmer compliance with conservation and wetland provisions.
Appeals
From 15 to 30 days. A producer may obtain reconsideration and review of any adverse determination made under this part in accordance with the appeal regulations specified in 7 CFR parts 11 and 780.
Renewals
Not Applicable.
How are proposals selected?
Not Applicable.
How may assistance be used?
The Agricultural Risk Coverage-County Coverage (ARC-CO) provides revenue less coverage at the county level for selected covered commodities on a farm. The Agricultural Risk Coverage-Individual Coverage program provides revenue loss coverage at the farm level for all acreage devoted to covered commodities across all of a producer's ARC-IC farms.

ARC is a revenue-based program that is designed to cover a portion of a farmer's out-of-pocket loss (referred to as "shallow loss:) when crop revenues fall below benchmark revenue levels, with the benchmark revenue based on either county level historic revenue for ARC-CO or the individual farm's historic revenue for ARC-IC.
What are the requirements after being awarded this opportunity?
Reporting
Not Applicable.
Auditing
Not Applicable.
Records
An owner or any other individual or entity receiving assistance for ARC shall maintain and retain financial books and records which will permit verification of all transactions for at least three years, following the end of the calendar year in which assistance was provided.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title Agriculture Risk Coverage, Chapter 7, Part 1412, Public Law 113-79.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
There is no limit placed on the time permitted to spend the money awarded. Method of awarding/releasing assistance: lump sum.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Consult the local phone directory for location of nearest county Farm Service Agency (FSA) office. If no listing, contact the appropriate State FSA office listed in the FSA section of Appendix IV of the catalog or on the web.
Headquarters Office
Brent N Orr 1400 Independence Ave SW Room 4759-S, Washington, District of Columbia 20024 Email: Brent.Orr@wdc.usda.gov Phone: (202) 720-7641 Fax: (202) 690-2130
Website Address
http://www.fsa.usda.gov/programs-and-services/arcplc_program/index
Financial Information
Account Identification
12-4336-0-3-999.
Obligations
(Direct Payments with Unrestricted Use) FY 14 $0; FY 15 est $5,404,000,000; and FY 16 est $8,445,000,000
Range and Average of Financial Assistance
No data available.
Regulations, Guidelines and Literature
Program is announced through news media and in letters to agricultural producers in the counties. Regulations published in the Federal Register and 7 CFR, Part 1412.
Examples of Funded Projects
Not Applicable.