Safety Net Program
Crop
ARC-CO Estimate
Enter crop data and click estimate.
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What This Calculator Does
This crop insurance indemnity estimator helps farmers and agricultural lenders compare potential ARC-CO (Agriculture Risk Coverage, County Option) and PLC (Price Loss Coverage) safety net payments using 2026 Farm Service Agency (FSA) enrollment data. It calculates estimated payments based on effective reference prices, Olympic average benchmark yields, actual county yields, and market year average prices for corn, soybeans, wheat, rice, cotton, and sorghum.
The Formula
ARC-CO is revenue-based: it guarantees 86% of benchmark revenue (Olympic average yield x Olympic average price). If actual county revenue falls below the guarantee, the payment covers the shortfall up to a maximum of 10% of benchmark revenue, paid on 85% of base acres. PLC is price-based: it pays when the national marketing year average price falls below the effective reference price (the higher of the statutory reference price or the loan rate). PLC payments are calculated on 85% of base acres at the payment yield. Both programs are subject to 5.7% sequestration.
Step-by-Step Example
Select program and crop
ARC-CO selected for corn. 2026 reference price: $4.01/bu. Benchmark yield: 181 bu/ac.
Enter market conditions
Actual county yield: 155 bu/ac. Market price: $4.20/bu.
Calculate ARC-CO
Benchmark revenue: $726.81/ac. Guarantee (86%): $625.06/ac. Actual revenue: $651.00/ac. No ARC-CO payment (actual exceeds guarantee).
Compare PLC alternative
PLC: $4.01 - $4.20 = -$0.19 (price above reference). No PLC payment either. Both programs would pay if prices dropped below $4.01 or yields crashed.
Real-World Use Cases
FSA Program Election
Farmers must elect ARC-CO or PLC for each covered commodity for the 2026 crop year. This calculator helps compare potential payments under different price and yield scenarios to make an informed election.
Farm Loan Underwriting
Agricultural lenders can estimate potential safety net payments as part of cash flow projections when evaluating operating loan applications.
Risk Management Planning
Use alongside federal crop insurance (FCIC) to understand the total safety net coverage, identifying gaps where additional risk protection may be needed.
Common Mistakes to Avoid
Confusing base acres with planted acres. ARC and PLC payments are made on base acres (historical allocation), not on current planted acres. Base acres may differ significantly from what is actually planted.
Forgetting the 85% payment factor. Both ARC-CO and PLC pay on only 85% of base acres, not the full base. This reduces the actual payment by 15%.
Not accounting for sequestration. Federal budget sequestration reduces ARC and PLC payments by 5.7% in 2026. The calculator shows pre-sequestration amounts.
Assuming ARC-CO uses farm-level data. ARC-CO uses county-level yields and national prices, not individual farm data. Your farm yield may differ from the county average. ARC-IC (Individual Coverage) uses farm-level data but covers only 65% of base acres.
Frequently Asked Questions
Accuracy and Disclaimer
Payment estimates are based on 2026 FSA program rules and statutory reference prices. Actual payments depend on final county yields (published by NASS), marketing year average prices, base acres, payment yields, and congressional appropriations. Payments are subject to sequestration and payment limitations. This tool is for planning purposes only. Contact your local FSA office for official program information and enrollment.
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