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Economist says wait to pick ARC or PLC for corn

An agricultural economist is changing his risk management recommendations because of the expected tight crop margins and current corn and soybean prices. 

Paul Mitchell says corn and soybean producers can expect some tight margins in 2024, even with some favorable fertilizer prices. “Expenditures, cost for crop production and livestock production, it’s about a break-even deal or up just a tiny bit but corn and soy, it looks like it’s down about five to seven percent on cost of production, but prices are down as well.”

And, Mitchell says he’s now advising farmers to hold off until February before deciding between Price Loss Coverage and Ag Risk Coverage (ARC and PLC) because of where the corn market is. “Wait until February, and then really, really re-evaluate, and I see soybean as ARC still and wheat probably, too, but corn? I’m getting a little nervous, so the best advice I’d say is to be a little patient but once we get those price expectations, make your move.”

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