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ARC/PLC and The board
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Posted 2/8/2019 21:29 (#7307729 - in reply to #7306990)
Subject: RE: ARC/PLC and The board

boilers01 - 2/8/2019 16:34

I’ve thought about this as soon as the arc/plc program came out. This is somewhat of a conspiracy theory too. I think the gov won’t allow the board to trade commodities below certain price levels in order to avoid paying out huge arc/plc payments. These reports like that was seen today help steer the board in the direction that favors Uncle Sam. The plc/arc program put a floor on commodity prices. The programs use 5 year olympic averages, so big payments aren’t triggered so fast, and gives time for prices to come back to the threshhold of no payments for the vast majority. What are your thoughts?
I’m standing next to the whipping post.

Its possible, but the equations were all posted to the usda website for arc and plc. All a producer had to do was input their base acres and yields in a spreadsheet and it was pretty simple to see which program would pay better for your operation. Granted the exact payout wouldnt be known until final prices and yields had been reported, but you could take a good educated guess.
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