During volatility in the markets, managing risk remains a priority for farmers and ranchers. New analysis from the American Farm Bureau Federation examines several farm bill risk management tools included in Title 1 and explains the impact and importance to farmers.
The analysis provides a historical perspective, including changes made in the 2018 Farm Bill to reauthorize and strengthen the PLC and ARC price and revenue programs. These programs were created in the 2014 Farm Bill to provide shallow-loss risk management coverage.
AFB Economist Shelby Myers says that one factor remains consistent as farmers and ranchers faced unprecedented circumstances in recent years, and that’s the need for a variety of risk management options. Programs like ARC and PLC have to fit farmers’ and ranchers’ unique situations. Risk management tools like these are vital to farmers and ranchers being able to mitigate the unpredictable nature of farming.
To read the report, go to fb.org.