During a House Agriculture hearing earlier this month, Secretary Vilsack stated that 2014 ARC and PLC payments will be reduced by 6.8%. When the 2015 LI group met with Secretary Vilsack in September he said he was in the process of negotiating the final sequester amount with the Office of Management and Budget. The reduction is a result of the 2011 Budget Act which requires an across the board sequestration of mandatory program spending. The crop insurance program is exempt from sequestration. Non-insured Crop Disaster Assistance Payments (NAP) will be reduced as well. The sequester takes effect for payments made during FY 2016.
For example Rice's projected PLC payment is $0.021 per pound. A rice farm with 100 acres of base and a yield of 6,480 lbs/acre would see a reduction of $786.54 or $7.865/acre.