The Price Loss Coverage (PLC) Program Explained
April 2, 2026
Price Loss Coverage, or PLC, is one of two commodity support programs farmers can elect under the current farm bill. Where ARC focuses on revenue shortfalls, PLC is simpler: it pays when the national market price for a covered commodity falls below a reference price set by Congress.
How payments are calculated
The PLC payment rate equals the difference between the reference price and the effective price (the higher of the national marketing year average price or the loan rate), multiplied by the payment yield for the farm's base acres, multiplied by 85% of those base acres.
Reference prices by commodity
Reference prices are fixed in statute for each crop cycle. As of the 2018 Farm Bill:
- Corn: $3.70/bushel
- Soybeans: $8.40/bushel
- Wheat: $5.50/bushel
- Rice (long-grain): $14.00/cwt
- Peanuts: $26.25/ton
When prices stay above these levels — as they did through much of 2021–2023 — PLC payments are zero. When prices fall, payments can be substantial.
PLC vs. ARC: which is better?
Neither program is universally better — it depends on your crop, your yield history, and your price expectations. PLC tends to outperform ARC when prices fall significantly below reference levels but yields stay strong. ARC tends to outperform when revenue falls for reasons other than price (e.g., a localized yield disaster) or when prices fall only moderately. Many farmers make different elections for different commodities on the same farm.
Tracking PLC payments
PLC payments appear in the USASpending data under the commodity program CFDA numbers. Browse programs or search for "Price Loss Coverage" to see payment totals and trends in SubsidyLookup.