Price Loss Coverage

 

The Price Loss Coverage program (PLC) 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the previous Direct and Counter-cyclical Payments Program (DCP) and the Average Crop Revenue Election (ACRE) which were repealed by P.L. 113-79. PLC provide revenue and price loss payments to eligible producers.

General information about this opportunity
Last Known Status
Active
Program Number
10.112
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 Agricultural Act of 2014, Title I, Part II, Section 1116, 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
PLC provides payments to eligible producers on farms enrolled for the 2014 through 2018 crop years.
Credentials/Documentation
It is understood and agreed that producers on a farm may participate in the program only by enrolling in a contract that is consistent with the election previously made for the farm and covered commodities of that farm. Election is not enrollment and the election that applies to a farm and the covered commodities of a farm applies without regard to whether or not producers choose to enroll the farm or not. Enrollment is required each and every contract year. 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.
Award Procedure
PLC program payments are issued when the effective price of a covered commodity is less than the respective reference price for that commodity. The effective price equals the higher of the market year average price (MYA) or the national average loan rate for the covered commodity. Producers receive their PLC payments after October 1 following the end of the 12 month marketing year for the covered commodity as applicable.
Deadlines
Jun 17, 2015 to Sep 30, 2015: This applies to only crop year 2015. The 2014 and 2015 enrollment of PLC farms, consistent with the program election for the farm and covered commodities made in the election period begins June 17, 2015, and ends Sept.30, 2015. The 2016 enrollment will begin Dec.1, 2015 and end Aug.1, 2016. The 2017 enrollment will begin Dec.1, 2016 and end Aug.1, 2017 and 2018 enrollment will begin Dec.1, 2017 and end Aug.1, 2018.
Approval/Disapproval Decision Time
Approval of payments depends on farmer compliance with conservation and wetland provisions.
Appeals
From 1 to 15 days. A producer may obtain reconsideration and review of any adverse determination made under this part in accordance with the appeal regulations found at parts 11 and 780 of Title 7 Agriculture.
Renewals
Not Applicable.
How are proposals selected?
Not Applicable.
How may assistance be used?
The PLC yield for covered commodities on the farm is equal to the counter-cyclical payment yield established for each covered commodity on the farm that was effective on September 13, 2013, unless the PLC yield is updated.
What are the requirements after being awarded this opportunity?
Reporting
Not Applicable.
Auditing
This program is excluded from coverage under 2 CFR 200, Subpart F - Audit Requirements. Recipients under this program are subject to audit by the Office of the Regional Inspector General, USDA.
Records
An owner or any other individual or entity receiving assistance for DCP shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which assistance was provided.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 7, Chapter 1412, Subpart A, 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
PLC payments shall be made beginning October 1, or as soon as practicable thereafter, after
the end of the applicable marketing year for the covered commodity, this is statutory. There is no limit place on the time permitted to spend the money award. 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 the nearest county FSA office. If no listing, contact the appropriate State FSA office listed in the Farm Service Agency section of Appendix IV of the Catalog or on the WEB at http://www.fsa.usda.gov/edso/.
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
Financial Information
Account Identification
12-4336-0-3-351.
Obligations
(Direct Payments for Specified Use) FY 14 $0; FY 15 est $0; and FY 16 est $932,000,000 - The program will begin in FY 2016.
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, 7 CFR Part 1412.
Examples of Funded Projects
Not Applicable.