ARCPLC Decision Aid and Write-Up

2021 Seed Cotton (SC) ARC/PLC Quick Read and Decision Aid

Don Shurley
Cotton Economist-Retired
Department of Agricultural and Applied Economics, University of Georgia

Producers may elect and must enroll in ARC or PLC, by crop by farm, for the 2021 crop year by March 15. If no election is made, the election previously made for 2019-2020 will remain for 2021.

PLC is a payment based on a market price trigger—if the market price is less than the Effective Reference Price. ARC is revenue based. Payment is received if Actual Revenue is less than the Revenue Guarantee which is based on price and county yield history.

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U.S. Cotton Trust Protocol Webinar Sessions for Producers

U.S. cotton producers’ gains toward reaching (by 2025) the U.S. cotton industry’s national sustainability goals:
  • 13% increase in productivity, i.e. reduced land use per pound of fiber;
  • 18% increase in irrigation efficiency;
  • 39% reduction in greenhouse gas emissions;
  • 15% reduction in energy use;
  • 50% reduction in soil loss; and
  • 30% increase in soil carbon.
These goals are in line with the United Nations’ sustainability goals. U.S. cotton producers’ commitment to these goals through the Trust Protocol will provide the global textile supply chain much-needed assurances that U.S. cotton is produced in a responsible manner. The Trust Protocol’s mission is aimed at 1) meeting U.S. cotton customers’ sustainability needs while 2) providing transparency on U.S. cotton sector efforts to promote farmer economic livelihood, environmental stewardship, caring of people/community and personal/corporate integrity.
Producers’ involvement in the voluntary Trust Protocol provides them a unique opportunity to examine their farming operations for areas where further changes can be made – a step that not only should reduce their environmental footprint but benefit their bottom line.
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