⋅ BY Dr. MICHAEL A. DELIBERTO ⋅
Louisiana State University Agricultural Center
Department of Agricultural Economics & Agribusiness
The 2021 national marketing year average (MYA) prices for long grain rice and medium grain rice have been published by the USDA and are listed in Table 1.
The Price Loss Coverage (PLC) program provides price support when a covered commodity’s national MYA price is less than the statutorily-established reference price. For the 2021 marketing year, a PLC program payment is triggered for both classes of rice. PLC program payment rates, by class are listed in Table 2.
PLC program payments ($/acre) are calculated by multiplying the PLC payment rate by the farm’s program yield for each covered commodity. PLC program payments are made on 85 percent of the farm’s base acres for a covered commodity. Farm program payments are subject to payment limits and budget sequestration cuts.
Figures 1and 2 illustrate the effect of the PLC program payment rates over a range of program yields for long grain rice and medium grain rice. (Please see page 2 for graphical depiction of payment rates at varying farm program yields.)
Figure 1. PLC payment for long-grain rice, varying farm program yields, 2021 CY.
Figure 2. PLC payment for southern medium-grain rice, varying farm program yields, 2021 CY.
$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 60 57 54 51 48 45 42 39 36 33 30 2