By Todd Neeley
DTN Staff Reporter
OMAHA (DTN) — Changes to Price Loss Coverage, or PLC, in the 2018 farm bill could result in higher federal payouts on the crop insurance program, according to a new analysis from Farmdoc at the University of Illinois.
In particular, the new farm bill allows for a one-time option to update payment yields.
“Of 21 program commodities, only corn, soybeans, upland cotton, and, especially sorghum have a U.S. national PLC yield that is higher with the 2018 than the 2014 farm bill update formula,” the Farmdoc analysis said. (https://farmdocdaily.illinois.edu/…)
Not only did an update in the PLC formula account for the change, but Farmdoc said there were a number of “yield-affecting” events during the update periods of 2013 to 2017 and 2008 to 2012.
As a result, the analysis said at the U.S. market level, corn, soybeans, upland cotton and sorghum have higher 2018 than 2014 PLC update yields.