Instead of ARC-CO or PLC (see step 4), the producers on the FSA farm may elect ARC-IC for the FSA farm. The choice of this program, however, applies to all program crops on the FSA farm and cannot be mixed with either PLC or ARC-CO on the FSA farm.
ARC-IC operates on the sum of all program crops on the farm (see below).
ARC-IC calculates the producer’s share of all FSA farms in the state that are also enrolled in ARC-IC.
The actual acres planted to each program crop on the FSA farm in the crop year are used to weight the crop revenues used in the calculations.
The Marketing Year Average (MYA) price is the national average price for the commodity received by producers in the 12-month marketing year.
An Olympic average involves dropping the year with the highest (yield or price or revenue) and the year with the lowest (yield or price or revenue) and averaging the remaining three years.
For benchmark calculations, any crop year in which the MYA price is lower than the reference price, the reference price replaces the MYA price (plug).
For benchmark calculations, any crop year in which the yield is less than 70% of the crop insurance transitional yield, 70% of the crop insurance transitional yield replaces the yield.