UGA Department of Agricultural and Applied Economics Extension Economist, Yangxuan Liu*, Adam Rabinowitz, and John H. Lai have created a fact-sheet pertaining to the 2018 Farm Bill Effective Reference Price. You can find the information at the link here.
Below are some main points from the fact-sheet:
- The 2018 Farm Bill created a new Effective Reference Price (ERP) to act as an escalator to the statutory reference price (RP) when marketing year average (MYA) prices increase.
- This publication provides a more detailed discussion about the new ERP that can affect Price Loss Coverage (PLC) and Agriculture Risk Coverage-County (ARC-CO) payments.
- We examined the five largest row crop commodities (cotton, peanut, corn, soybean, and wheat) produced in Georgia and have illustrated that the ERP will likely not take effect during the 2019-2021 crop marketing years.
- Producers of these agricultural commodities should expect to use the statutory reference price (RP) in computing expected ARC and PLC payments for the first three years of the current farm bill.
If you have any questions, please contact the Burke County Extension Office.