For 2025 production, producers will receive the higher of ARC or PLC by crop, by farm. 2025 marketing year average (MYA) prices have now been determined and are now available for final PLC payment calculations. 2025 actual county yields have also been determined and to be used in ARC-County payment calculations.
The PLC Payment Rate is the difference between the Effective Reference Price and the MYA Price if the MYA is less.
PLC Rate = ERP – MYA Price
The 2025 MYA Price for seed cotton is $0.3408/lb and is the weighted average of upland cotton and cottonseed.
PLC is paid at the farm’s established PLC Yield. Just for example, using the average farm PLC yield for seed cotton for Worth County, GA, the PLC Payment would be:
$0.0792/lb x 2,182.72 lbs/acre = $172.87 per acre
SOURCE: https://www.fsa.usda.gov/documents/plc-county-yields-py2025
Your payment yield will be higher or lower than this; so will your payment. Payment is received on 85% of the farm’s base acres.
Because for 2025 the producer will receive the higher of PLC or ARC, your farm PLC actually represents the minimum the producer would be paid.
Alternatively, an ARC-County payment is made if 2025 Actual Revenue (actual county yield x MYA Price) for the crop for the county is less than the established historical Benchmark Revenue.
ARC is applied to your farm based on your “HIP factor”—your history of percentage of the crop irrigated. If not irrigated, the HIP factor would be zero. If the county is not a HIP county for the crop, this does not apply, and there is only one ARC for “All”.
Knowing your farm’s PLC payment yield and the ARC information for the crop for your county, you can also compare ARC and PLC.
Payments are subject to a 5.7% reduction for budget sequestration.
Example: $172.87 per acre PLC x .943 = $163.02 actual payment
Payments are also subject to a limit of $155,000 per eligible person or legal entity. Peanuts has a separate and equal limit
NOTE: Producers may but are not required to do these calculations. The calculations, data, and sources shown are for informational and educational purposes only
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