Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC)

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1 Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Background The 2014 Farm Bill provides several alternative farm programs for mitigating farm production and price risks. The purpose of the twenty-one following charts is to illustrate differences between the two primary programs created by the 2014 Farm Bill (ARC and PLC) and how they behave across counties and between crops. These charts are designed to help Iowa producers understand the implications for selecting one program over the other, as well as to identify options for adapting the programs best suited for their farms. Specifically, these charts seek to illustrate: How the ARC program performs relative to the PLC program in terms of the following: o Geographic location of a farm o Differences in performance among primary covered crops (corn & soybeans) How counties and crops throughout the state may be better suited to certain program selection combinations The varying types of risk management provided by program for each primary covered crop The estimated outcomes of payments received over the course of the 2014 Farm Bill s life ( ).

2 Benton 2014: ARC or PLC Payments ($/100 acres) Avg Nat'l Corn Price: $3.49 ARC risk management dominates $- $5,000 $10,000 $15,000 $20,000 $25, Corn ARC 2014 Corn PLC 2014 Benton 2016: ARC or PLC Payments ($/100 acres) Avg Nat'l Corn Price: $3.66 PLC risk management dominates; ARC maxed out $0 $5,000 $10,000 $15,000 $20,000 Corn ARC 2016 Corn PLC $0 $5,000 $10,000 $15,000 $20,000 Corn ARC 2018 Corn PLC 2018 Benton : Corn ARC or PLC 5-YEAR SUM Payments ($/100 acres) Benton 2018: ARC or PLC Payments ($/100 acres) Avg Nat'l Corn Price: $3.89 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70, Sum Corn ARC Sum Corn PLC Benton 2015: ARC or PLC Payments ($/100 acres) Avg Nat'l Corn Price: $3.51 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Corn ARC 2015 Corn PLC Benton 2017: ARC or PLC Payments ($/100 acres) Avg Nat'l Corn Price: $3.82 $0 $5,000 $10,000 $15,000 $20,000 Corn ARC 2017 Corn PLC 2017 Benton : Corn ARC or PLC AVERAGE Payments ($/100 acres) $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14, Avg Corn ARC Avg Corn PLC IFBF 2014 Farm Simulator, 12/31/2014

3 Benton 2014: ARC or PLC Payments ($/100 acres) Avg Nat'l Soybeans Price: $10.02 ARC risk management dominates $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6, Soybeans ARC 2014 Soybeans PLC 2014 Benton 2016: ARC or PLC Payments ($/100 acres) Avg Nat'l Soybeans Price: $9.00 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7, Soybeans ARC 2016 Soybeans PLC 2016 Benton 2018: ARC or PLC Payments ($/100 acres) Avg Nat'l Soybeans Price: $9.60 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Soybeans ARC 2018 Soybeans PLC 2018 Benton : Soybeans ARC or PLC 5-YEAR SUM Payments ($/100 acres) $0 $5,000 $10,000 $15,000 $20,000 $25, Sum Soybeans ARC Sum Soybeans PLC Benton 2015: ARC or PLC Payments ($/100 acres) Avg Nat'l Soybeans Price: $8.65 $0 $2,000 $4,000 $6,000 $8, Soybeans ARC 2015 Soybeans PLC 2015 Benton 2017: ARC or PLC Payments ($/100 acres) Avg Nat'l Soybeans Price: $9.39 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6, Soybeans ARC 2017 Soybeans PLC 2017 Benton : Soybeans ARC or PLC AVERAGE Payments ($/100 acres) $0 $1,000 $2,000 $3,000 $4,000 $5, Avg Soybeans ARC Avg Soybeans PLC IFBF 2014 Farm Simulator, 12/31/2014

4 Benton 2014: ARC or PLC Payments ($/200 acres) Avg Nat'l Prices: Corn: $3.49; Soybeans: $ $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30, Corn & Soybeans ARC 2014 Corn & Soybeans PLC 2014 Corn ARC, Soybeans PLC 2014 Corn PLC, Soybeans ARC, 2014 Benton 2016: ARC or PLC Payments ($/200 acres) Avg Nat'l Prices: Corn: $3.66; Soybeans: $9.00 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Corn & Soybeans ARC 2016 Corn & Soybeans PLC 2016 Corn ARC, Soybeans PLC 2016 Corn PLC, Soybeans ARC, 2016 Benton 2018: ARC or PLC Payments ($/200 acres) Avg Nat'l Prices: Corn: $3.89; Soybeans: $9.60 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Corn & Soybeans ARC 2018 Corn & Soybeans PLC 2018 Corn ARC, Soybeans PLC 2018 Corn PLC, Soybeans ARC, 2018 Benton : Corn and Soybeans ARC or PLC 5-YEAR SUM Payments ($/200 acres) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70, Sum Corn & Soybeans ARC Sum Corn & Soybeans PLC Sum Corn ARC & Soybeans PLC Sum Corn PLC & Soybeans ARC Benton 2015: ARC or PLC Payments ($/200 acres) Avg Nat'l Prices: Corn: $3.51; Soybeans: $ $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30, Corn & Soybeans ARC 2015 Corn & Soybeans PLC 2015 Corn ARC, Soybeans PLC 2015 Corn PLC, Soybeans ARC, 2015 Benton 2017: ARC or PLC Payments ($/200 acres) Avg Nat'l Prices: Corn: $3.82; Soybeans: $9.39 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Corn & Soybeans ARC 2017 Corn & Soybeans PLC 2017 Corn ARC, Soybeans PLC 2017 Corn PLC, Soybeans ARC, 2017 Benton : Corn and Soybeans ARC or PLC AVERAGE Payments ($/200 acres) $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14, Avg Corn & Soybeans ARC Avg Corn & Soybeans PLC Average Corn ARC & Soybeans PLC Average Corn PLC & Soybeans ARC IFBF 2014 Farm Simulator, 12/31/2014

5 Agricultural Risk Coverage (ARC)/Revenue Protection (RP) Crop Insurance vs. Price Loss Coverage (PLC) and Supplemental Coverage Option (SCO) Background The 2014 Farm Bill provides several alternative farm programs for mitigating farm production and price risks. The purpose of the eighteen following charts is to illustrate differences between the two primary programs created by the 2014 Farm Bill (ARC and PLC) and how they behave across counties and between crops. Additionally, these charts incorporate traditional (RP) and new (SCO) crop insurance products to give a sense for how complete risk protection strategies vary across Iowa counties. These charts are designed to help Iowa producers understand the implications for selecting one program over the other, as well as to identify options for adapting the programs best suited for their farms. Specifically, these charts seek to illustrate: How the ARC program (coupled with a 85% RP insurance product) performs relative to the PLC program (coupled with 75% RP and 11% SCO coverage) in terms of the following: o Geographic location of a farm o Differences in performance among primary covered crops (corn & soybeans) How counties and crops throughout the state may be better suited to certain program selection combinations The varying types of risk management provided by program for each primary covered crop The estimated outcomes of payments received over the course of the 2014 Farm Bill s life ( ).

6 Benton 2015: Corn PLC, RP 75% & SCO or ARC & RP 85% Payments ($/100 acres) $0 $20,000 $40,000 $60,000 $80,000 $100,000 Corn ARC & RP 85% 2015 Corn PLC, RP 75% & SCO 2015 Benton 2017: Corn PLC, RP 75% & SCO or ARC & RP 85% Payments ($/100 acres) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Corn ARC & RP 85% 2017 Corn PLC, RP 75% & SCO Benton : Corn PLC, RP 75% & SCO or ARC & RP 85% AVERAGE Payments ($/100 acres) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30, Avg Corn ARC & RP 85% Avg Corn PLC, RP 75% & SCO Chart Notes for PLC + RP 75% + SCO or ARC + RP 85% Payments Avg Prices: Avg Nat'l (MYA) Corn Price : $ 3.51 $ 3.66 $ 3.82 $ 3.89 Avg Nat'l (MYA) Soybeans Price: $ 8.65 $ 9.00 $ 9.39 $ 9.60 Avg Spring Corn Price: $ 3.85 $ 3.99 $ 4.18 $ 4.26 Avg Harvest Corn Price: $ 3.80 $ 3.96 $ 4.05 $ 3.67 Avg Spring Soybeans Price: $ 8.88 $ 9.24 $ 9.63 $ 9.83 Avg Harvest Soybeans Price: $ 9.08 $ 9.44 $ 9.66 $ ) RP & SCO premiums were not subtracted from payments. 2) The simulation model ran 500 times to generate distributions of payments. 3) Individual crop payments were estimated per 100 acres. Combined crop payments were estimated per 200 acres (100 corn/100 soybeans mix). Benton 2016: Corn PLC, RP 75% & SCO or ARC & RP 85% Payments ($/100 acres) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Corn ARC & RP 85% 2016 Corn PLC, RP 75% & SCO 2016 Benton 2018: Corn PLC, RP 75% & SCO or ARC & RP 85% Payments ($/100 acres) $0 $10,000 $20,000 $30,000 $40,000 Corn ARC & RP 85% 2018 Corn PLC, RP 75% & SCO 2018 Benton : Corn PLC, RP 75% & SCO or ARC & RP 85% 5-YEAR SUM Payments ($/100 acres) $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120, Sum Corn ARC & RP 85% Sum Corn PLC, RP 75% & SCO IFBF 2014 Farm Simulator, 1/5/2015

7 $0 $10,000 $20,000 $30,000 $40,000 $50,000 Soybeans ARC & RP 85% 2015 Soybeans PLC, RP 75% & SCO Benton 2017: Soybeans PLC, RP 75% & SCO or ARC & RP 85% Payments ($/100 acres) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Soybeans ARC & RP 85% 2017 Soybeans PLC, RP 75% & SCO Benton 2015: Soybeans PLC, RP 75% & SCO or ARC & RP 85% Payments ($/100 acres) Benton : Soybeans PLC, RP 75% & SCO or ARC & RP 85% AVERAGE Payments ($/100 acres) $0 $5,000 $10,000 $15,000 $20,000 $25, Avg ARC & RP 85% Avg PLC, RP 75% & SCO Chart Notes for PLC + RP 75% + SCO or ARC + RP 85% Payments Avg Prices: Avg Nat'l (MYA) Corn Price : $ 3.51 $ 3.66 $ 3.82 $ 3.89 Avg Nat'l (MYA) Soybeans Price: $ 8.65 $ 9.00 $ 9.39 $ 9.60 Avg Spring Corn Price: $ 3.85 $ 3.99 $ 4.18 $ 4.26 Avg Harvest Corn Price: $ 3.80 $ 3.96 $ 4.05 $ 3.67 Avg Spring Soybeans Price: $ 8.88 $ 9.24 $ 9.63 $ 9.83 Avg Harvest Soybeans Price: $ 9.08 $ 9.44 $ 9.66 $ ) RP & SCO premiums were not subtracted from payments. 2) The simulation model ran 500 times to generate distributions of payments. 3) Individual crop payments were estimated per 100 acres. Combined crop payments were estimated per 200 acres (100 corn/100 soybeans mix). Benton 2016: Soybeans PLC + RP 75% + SCO or ARC + RP 85% Payments ($/100 acres) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Soybeans ARC & RP 85% 2016 Soybeans PLC, RP 75% & SCO Benton 2018: Soybeans PLC, RP 75% & SCO or ARC & RP 85% Payments ($/100 acres) $0 $10,000 $20,000 $30,000 $40,000 $50,000 Soybeans ARC & RP 85% 2018 Soybeans PLC, RP 75% & SCO Benton : Soybeans PLC, RP 75% & SCO or ARC & RP 85% 5-YEAR SUM Payments ($/100 acres) $0 $20,000 $40,000 $60,000 $80,000 $100, Sum ARC & RP 85% Sum PLC, RP 75% & SCO IFBF 2014 Farm Simulator, 1/5/2015

8 Benton 2015: Corn & Soybean PLC, RP 75% & SCO or ARC & RP 85% Payments ($/200 acres) $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 ARC, RP 85% 2015 PLC, RP 75% & SCO 2015 Corn ARC, Soybeans PLC 2015 Corn PLC, Soybeans ARC, 2015 Benton 2017: Corn & Soybeans PLC, RP 75% & SCO or ARC & RP 85% Payments ($/200 acres) 2 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 ARC & RP 85% 2017 PLC, RP 75% & SCO 2017 Corn ARC, Soybeans PLC 2017 Corn PLC, Soybeans ARC, 2017 Benton : Corn & Soybeans PLC, RP 75% & SCO or ARC & RP 85% AVERAGE Payments ($/200 acres) $0 $5,000$10,000$15,000$20,000$25,000$30,000$35,000$40, Avg ARC & RP 85% Avg PLC, RP 75% & SCO Average Corn ARC & Soybeans PLC Average Corn PLC & Soybeans ARC 2 Chart Notes for PLC + RP 75% + SCO or ARC + RP 85% Payments Avg Prices: Avg Nat'l (MYA) Corn Price : $ 3.51 $ 3.66 $ 3.82 $ 3.89 Avg Nat'l (MYA) Soybeans Price: $ 8.65 $ 9.00 $ 9.39 $ 9.60 Avg Spring Corn Price: $ 3.85 $ 3.99 $ 4.18 $ 4.26 Avg Harvest Corn Price: $ 3.80 $ 3.96 $ 4.05 $ 3.67 Avg Spring Soybeans Price: $ 8.88 $ 9.24 $ 9.63 $ 9.83 Avg Harvest Soybeans Price: $ 9.08 $ 9.44 $ 9.66 $ ) RP & SCO premiums were not subtracted from payments. 2) The simulation model ran 500 times to generate distributions of payments. 3) Individual crop payments were estimated per 100 acres. Combined crop payments were estimated per 200 acres (100 corn/100 soybeans mix). Benton 2016: Corn & Soybeans PLC, RP 75% & SCO or ARC & RP 85% Payments ($/200 acres) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 ARC & RP 85% 2016 PLC, RP 75% & SCO 2016 Corn ARC, Soybeans PLC 2016 Corn PLC, Soybeans ARC, Benton 2018: Corn & Soybeans PLC, RP 75% & SCO or ARC & RP 85% Payments ($/200 acres) $0 $20,000 $40,000 $60,000 $80,000 ARC & RP 85% 2018 PLC, RP 75% & SCO 2018 Corn ARC, Soybeans PLC 2018 Corn PLC, Soybeans ARC, 2018 Benton : Corn & Soybeans PLC, RP 75% & SCO or ARC & RP 85% 4-YEAR SUM Payments ($/200 acres) $0 $20,000$40,000$60,000$80,000$100,000$120,000$140,000$160, Sum ARC & RP 85% Sum PLC, RP 75% & SCO Sum Corn ARC & Soybeans PLC Sum Corn PLC & Soybeans ARC IFBF 2014 Farm Simulator, 1/5/2015

9 Update of Base Acres/s: Comparative Value of Base Acres Background Since the mid-1980s various farm bills have allowed for the updating of base acres and base yields. The 2014 Farm Bill allows for such an option. In many cases farmers throughout Iowa will find it advantageous to update base acres and/or base yields. Primary determinants for updating of base acres and/or yields are related to: How a farm s yields have behaved with respect to the county o The more plug yields a farm has, the less likely it is be beneficial to update base yields Crop rotation during the years Current base acreage mix prior to the potential for update The chart below illustrates, at the county average, the comparative value of base acreage for corn and soybeans under the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs. In some cases, the dominance of a crop/program combination is very apparent while other counties the dominance is less pronounced (At any point on the vertical "Y" axis, read across the chart, the line furthest to the right is dominant at that point). As you consider the base acre/yield update decision it would be prudent to consider how your farm typically behaves with respect to the county averages depicted below. Benton: The Value of Corn and Soybean Base $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70, Sum Corn ARC Sum Corn PLC Sum Soybean ARC Sum Soybean PLC IFBF 2014 Farm Simulator, 1/2/2015

10 Tabular Summaries of the Agricultural Risk Coverage (ARC), Price Loss Coverage (PLC) and Supplemental Coverage Option (SCO) Farm Programs Background As shown in the preceding charts contained in this file, farm programs authorized by the 2014 Farm Bill provides various options for mitigating farm production and price risks. As an alternative to these charts, tables have been designed to alternatively show the payments that may be expected at varying percentiles under differing yield and price outcomes. The following points will aid in your interpretation of these tables. Agricultural Risk Coverage (ARC) Given that each year provides for differing outcomes from participation in the ARC program, a separate table is created for each year the 2014 Farm Bill is in effect ( ). Along the left of the annual tables are county average yields, coupled with associated approximated percentiles for achieving a particular average county yield. Along the top of the annual tables are a range of expected prices, coupled with the associated approximated percentiles for achieving a particular price. Using a gradient color scheme, estimated payments are shown as elements of the table. Price Loss Coverage (PLC) Because reference prices do not change during the life of the 2014 Farm Bill and price points across the top of the PLC table are constant across years, only one table depicting estimated payments by price point is shown. Note, however, that approximated percentiles by price point change each year. Using a gradient color scheme, estimated payments are shown as elements of the table. Supplemental Coverage Option (SCO) The assumption has been made that 75% Revenue Protection crop insurance has been purchased, thereby implying an 11% SCO coverage level. Given that each year provides for differing outcomes from participation in the SCO program and the program is not available in 2014, a separate table is created for each of the remaining years in the 2014 Farm Bill ( ). Along the left of the annual tables are county average yields, coupled with associated approximated percentiles for achieving a particular average county yield. Along the top of the annual tables are a range of expected prices, coupled with the associated approximated percentiles for achieving a particular price. Using a gradient color scheme, estimated payments are shown as elements of the table.

11 Agricultural Risk Coverage Benton County: 2014 ARC Payments ($/acre) - CORN 2014 Selected National (Marketing Year Average) Price* Benton County: 2015 ARC Payments ($/acre) - CORN 2015 Selected National (Marketing Year Average) Price* $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 Min 118 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 Min 121 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ 41 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ 35 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 Median 189 $ 4 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 Median 191 $ - $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ - $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ - $ 71 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ - $ 71 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ - $ 62 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ - $ 43 $ 75 $ 75 $ 75 $ 75 $ 75 $ $ - $ 34 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 max 206 $ - $ 33 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 max 208 $ - $ 26 $ 70 $ 75 $ 75 $ 75 $ 75 $ 75 Benton County: 2016 ARC Payments ($/acre) - CORN 2016 Selected National (Marketing Year Average) Price* Benton County: 2017 ARC Payments ($/acre) - CORN 2017 Selected National (Marketing Year Average) Price* $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 Min 123 $ 68 $ 68 $ 68 $ 68 $ 68 $ 68 $ 68 $ 68 Min 125 $ 59 $ 59 $ 59 $ 59 $ 59 $ 59 $ 59 $ $ 68 $ 68 $ 68 $ 68 $ 68 $ 68 $ 68 $ $ - $ 56 $ 59 $ 59 $ 59 $ 59 $ 59 $ $ 13 $ 68 $ 68 $ 68 $ 68 $ 68 $ 68 $ $ - $ - $ 35 $ 59 $ 59 $ 59 $ 59 $ $ - $ 47 $ 68 $ 68 $ 68 $ 68 $ 68 $ $ - $ - $ 2 $ 41 $ 59 $ 59 $ 59 $ 59 Median 193 $ - $ 14 $ 55 $ 68 $ 68 $ 68 $ 68 $ 68 Median 196 $ - $ - $ - $ 11 $ 52 $ 59 $ 59 $ $ - $ 7 $ 48 $ 68 $ 68 $ 68 $ 68 $ $ - $ - $ - $ 5 $ 47 $ 59 $ 59 $ $ - $ - $ 39 $ 68 $ 68 $ 68 $ 68 $ $ - $ - $ - $ - $ 39 $ 59 $ 59 $ $ - $ - $ 15 $ 59 $ 68 $ 68 $ 68 $ $ - $ - $ - $ - $ 17 $ 59 $ 59 $ 59 max 211 $ - $ - $ 6 $ 51 $ 68 $ 68 $ 68 $ 68 max 213 $ - $ - $ - $ - $ 12 $ 57 $ 59 $ 59 Benton County: 2018 ARC Payments ($/acre) - CORN Notes for ARC: 2018 Selected National (Marketing Year Average) Price* $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 Min 128 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 $ $ - $ 39 $ 58 $ 58 $ 58 $ 58 $ 58 $ $ - $ - $ 20 $ 57 $ 58 $ 58 $ 58 $ $ - $ - $ - $ 21 $ 58 $ 58 $ 58 $ 58 Median 199 $ - $ - $ - $ - $ 36 $ 58 $ 58 $ $ - $ - $ - $ - $ 33 $ 58 $ 58 $ $ - $ - $ - $ - $ 27 $ 58 $ 58 $ $ - $ - $ - $ - $ 5 $ 50 $ 58 $ 58 max 215 $ - $ - $ - $ - $ - $ 43 $ 58 $ Avg Nat'l (MYA) Corn Price $3.49 $3.51 $3.66 $3.82 $3.89 Reference price: corn= $3.70/bu. National Average loan rates: corn=1.95/bu. For the purpose of estimating 5-year Olympic price, price cannot be below the reference price for corn ($3.70) in any of the years used. If National (MYA) corn price< $3.70, use $3.70. For the purpose of estimating 5-year Olympic yield, yield cannot be below 7 of transitional yield (t-yield) in any of the years used, if that is the case use 7 of t-yield. ARC Benchmark Revenue= 5 year Olympic average price*5 year Olympic average yield. ARC Revenue Guarantee =Benchmark revenue*0.86. Revenue= * MYA price. For the purpose of estimating the actual revenue, if MYA<the national average loan rate for marketing assistance loan for corn ($1.95/bushel), use $1.95/bushel. Payment rate=guarantee - actual revenue, when actual revenue<guarantee, max payment rate=0.10*benchmark revenue. Payment=payment rate * base acres in crop * *2014/15 price based on the November 2014 WASDE projection for 2014/15 marketing year. *2015/ /19 prices based on the average of USDA and FAPRI projected prices for 2015/ /19. Price Loss Coverage Benton County: PLC Payments ($/acre) - CORN Selected National (Marketing Year Average) Price* $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 $ - $ 25 $ 57 $ 89 $ 120 $ 152 $ 184 $ 216 Notes for PLC: PLC will make payments when: the effective price (i.e., higher of MYA price or national average loan rate for a marketing assistance loan for corn or ($1.95/bu)) is less than the reference price. Corn reference price =$3.70/bu. Payment rate= reference price - higher of MYA price or loan rate. Payments yields option chosen= update to 9 of the average yields from 2008 through Benton county payment yieds=149 bu/acre. Payment= payment rate * payment yield * base acres *0.85. *2014 price based on the November 2014 WASDE projection for 2014/15 marketing year. * prices based on the average of USDA and FAPRI projected prices for 2015/16 to 2018/19 IFBF 2014 Farm Simulator, 12/31/2014

12 11% Supplemental Coverage Option Benton County: 2015 SCO Payments ($/acre) When Coupled with 75% RP- CORN 2015 Selected Harvest Price* Benton County: 2016 SCO Payments ($/acre) When Coupled with 75% RP- CORN 2016 Selected Harvest Price* $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 Min 121 $ 81 $ 78 $ 78 $ 78 $ 78 $ 78 $ 78 $ 78 Min 123 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 $ $ 44 $ 78 $ 78 $ 78 $ 78 $ 78 $ 78 $ $ 36 $ 82 $ 82 $ 82 $ 82 $ 82 $ 82 $ $ - $ 22 $ 64 $ 78 $ 78 $ 78 $ 78 $ $ - $ 50 $ 82 $ 82 $ 82 $ 82 $ 82 $ $ - $ - $ 22 $ 67 $ 78 $ 78 $ 78 $ $ - $ 6 $ 51 $ 82 $ 82 $ 82 $ 82 $ 82 Median 191 $ - $ - $ - $ 32 $ 78 $ 78 $ 78 $ 78 Median 193 $ - $ - $ 15 $ 63 $ 82 $ 82 $ 82 $ $ - $ - $ - $ 28 $ 76 $ 78 $ 78 $ $ - $ - $ 8 $ 57 $ 82 $ 82 $ 82 $ $ - $ - $ - $ 18 $ 67 $ 78 $ 78 $ $ - $ - $ - $ 46 $ 82 $ 82 $ 82 $ $ - $ - $ - $ - $ 41 $ 78 $ 78 $ $ - $ - $ - $ 21 $ 73 $ 82 $ 82 $ 82 max 208 $ - $ - $ - $ - $ 34 $ 78 $ 78 $ 78 max 211 $ - $ - $ - $ 11 $ 63 $ 82 $ 82 $ 82 Benton County: 2017 SCO Payments ($/acre) When Coupled with 75% RP- CORN 2017 Selected Harvest Price* Benton County: 2018 SCO Payments ($/acre) When Coupled with 75% RP- CORN 2018 Selected Harvest Price* $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 $ 4.00 $ 3.50 $ 3.25 $ 3.00 $ 2.75 $ 2.50 $ 2.25 $ 2.00 Min 125 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 Min 128 $ 90 $ 90 $ 90 $ 90 $ 90 $ 90 $ 90 $ $ 77 $ 88 $ 88 $ 88 $ 88 $ 88 $ 88 $ $ 85 $ 90 $ 90 $ 90 $ 90 $ 90 $ 90 $ $ - $ 85 $ 88 $ 88 $ 88 $ 88 $ 88 $ $ 10 $ 90 $ 90 $ 90 $ 90 $ 90 $ 90 $ $ - $ 42 $ 88 $ 88 $ 88 $ 88 $ 88 $ $ - $ 47 $ 90 $ 90 $ 90 $ 90 $ 90 $ 90 Median 196 $ - $ 1 $ 50 $ 88 $ 88 $ 88 $ 88 $ 88 Median 199 $ - $ 10 $ 60 $ 90 $ 90 $ 90 $ 90 $ $ - $ - $ 43 $ 88 $ 88 $ 88 $ 88 $ $ - $ 5 $ 55 $ 90 $ 90 $ 90 $ 90 $ $ - $ - $ 32 $ 82 $ 88 $ 88 $ 88 $ $ - $ - $ 47 $ 90 $ 90 $ 90 $ 90 $ $ - $ - $ 2 $ 54 $ 88 $ 88 $ 88 $ $ - $ - $ 16 $ 69 $ 90 $ 90 $ 90 $ 90 max 213 $ - $ - $ - $ 47 $ 88 $ 88 $ 88 $ 88 max 215 $ - $ - $ 5 $ 59 $ 90 $ 90 $ 90 $ 90 Table Notes for SCO: Expected County Corn for Benton county (bushels) Expected County Soybeans for Benton county (bushels) Avg Spring Corn Price: $ 3.85 $ 3.99 $ 4.18 $ 4.26 Avg Spring Soybeans Price: $ 8.88 $ 9.24 $ 9.63 $ 9.83 Expected county yield is the trend yield using 34 years of county yield SCO Guarantee is estimated using the expected county yield and the base insurance price. However for RP coverage, when estimating the SCO Guarantee, use the larger of the base price of the harvest price. County Revenue is estimated using the and the harvest prince. When a payment is triggered (i.e., when County Revenue<86% * SCO Guarantee), then SCO Payment = minimum of: SCO trigger - County Revenue or revenue band =(86% - Coverage Level ) * SCO Guarantee. IFBF 2014 Farm Simulator, 12/31/2014

13 Agricultural Risk Coverage Benton County: 2014 ARC Payments ($/acre) - SOYBEANS 2014 Selected National (Marketing Year Average) Price* Benton County: 2015 ARC Payments ($/acre) - SOYBEANS 2015 Selected National (Marketing Year Average) Price* $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 Min 34 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 Min 35 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ $ 49 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ $ 41 $ 53 $ 53 $ 53 $ 53 $ 53 $ 53 $ $ 5 $ 26 $ 48 $ 53 $ 53 $ 53 $ 53 $ $ 3 $ 24 $ 46 $ 53 $ 53 $ 53 $ 53 $ $ - $ 6 $ 28 $ 51 $ 53 $ 53 $ 53 $ $ - $ 7 $ 29 $ 52 $ 53 $ 53 $ 53 $ 53 Median 54 $ - $ - $ 17 $ 40 $ 53 $ 53 $ 53 $ 53 Median 55 $ - $ - $ 14 $ 37 $ 53 $ 53 $ 53 $ $ - $ - $ 7 $ 30 $ 53 $ 53 $ 53 $ $ - $ - $ 4 $ 28 $ 52 $ 53 $ 53 $ $ - $ - $ 2 $ 26 $ 50 $ 53 $ 53 $ $ - $ - $ - $ 23 $ 47 $ 53 $ 53 $ $ - $ - $ - $ - $ 22 $ 48 $ 53 $ $ - $ - $ - $ - $ 18 $ 44 $ 53 $ 53 max 61 $ - $ - $ - $ - $ 18 $ 43 $ 53 $ 53 max 61 $ - $ - $ - $ - $ 15 $ 41 $ 53 $ 53 Benton County: 2016 ARC Payments ($/acre) - SOYBEANS 2016 Selected National (Marketing Year Average) Price* Benton County: 2017 ARC Payments ($/acre) - SOYBEANS 2017 Selected National (Marketing Year Average) Price* $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 Min 35 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 Min 36 $ 47 $ 47 $ 47 $ 47 $ 47 $ 47 $ 47 $ $ 29 $ 48 $ 52 $ 52 $ 52 $ 52 $ 52 $ $ - $ - $ 19 $ 39 $ 47 $ 47 $ 47 $ $ - $ 10 $ 31 $ 52 $ 52 $ 52 $ 52 $ $ - $ - $ - $ 7 $ 28 $ 47 $ 47 $ $ - $ - $ 12 $ 34 $ 52 $ 52 $ 52 $ $ - $ - $ - $ - $ 9 $ 32 $ 47 $ 47 Median 55 $ - $ - $ - $ 20 $ 44 $ 52 $ 52 $ 52 Median 56 $ - $ - $ - $ - $ - $ 21 $ 45 $ $ - $ - $ - $ 14 $ 38 $ 52 $ 52 $ $ - $ - $ - $ - $ - $ 15 $ 39 $ $ - $ - $ - $ 7 $ 31 $ 52 $ 52 $ $ - $ - $ - $ - $ - $ 8 $ 33 $ $ - $ - $ - $ - $ 2 $ 28 $ 52 $ $ - $ - $ - $ - $ - $ - $ 8 $ 34 max 62 $ - $ - $ - $ - $ - $ 25 $ 51 $ 52 max 62 $ - $ - $ - $ - $ - $ - $ 5 $ 31 Benton County: 2018 ARC Payments ($/acre) - SOYBEANS 2018 Selected National (Marketing Year Average) Price* $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 Min 36 $ 43 $ 43 $ 43 $ 43 $ 43 $ 43 $ 43 $ $ - $ - $ - $ 8 $ 28 $ 43 $ 43 $ $ - $ - $ - $ - $ - $ 18 $ 40 $ $ - $ - $ - $ - $ - $ 1 $ 24 $ 43 Median 56 $ - $ - $ - $ - $ - $ - $ 13 $ $ - $ - $ - $ - $ - $ - $ 5 $ $ - $ - $ - $ - $ - $ - $ 0 $ $ - $ - $ - $ - $ - $ - $ - $ 4 max 62 $ - $ - $ - $ - $ - $ - $ - $ - Notes for ARC: Avg Nat'l (MYA) Corn Price $10.02 $8.65 $9.00 $9.39 $9.60 Reference price: Soybeans=$8.40/bu. National Average loan rates: Soybeans=$5.00 For the purpose of estimating 5-year Olympic price, price cannot be below reference price for soybeans ($8.40) in any of the years used. If National (MYA) soybeans price< $8.40, use $8.40. For the purpose of estimating 5-year Olympic yield, yield cannot be below 7 of transitional yield (t-yield) in any of the years used, if that is the case use 7 of t-yield. ARC Benchmark Revenue= 5 year Olympic average price*5 year Olympic average yield. ARC Revenue Guarantee =Benchmark revenue*0.86. Revenue= * MYA price. For the purpose of estimating the actual revenue, if MYA<the national average loan rate for marketing assistance loan for soybeans ($5.00) use $5.00/bu. Payment rate=guarantee - actual revenue, when actual revenue<guarantee, max payment rate=0.10*benchmark revenue. Payment=payment rate * base acres in crop * *2014/15 price based on the November 2014 WASDE projection for 2014/15 marketing year. *2015/ /19 prices based on the average of USDA and FAPRI projected prices for 2015/ /19. Price Loss Coverage Benton County: PLC Payments ($/acre) - SOYBEANS Selected National (Marketing Year Average) Price* $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 $ - $ - $ - $ - $ - $ 16 $ 36 $ 56 Notes for PLC: PLC will make payments when: the effective price (i.e., higher of MYA price or national average loan rate for a marketing assistance loan for soybeans ($5.00/bu)) is less than the reference price. Soybeans reference price =$8.40/bu. Payment rate= reference price - higher of MYA price or loan rate. Payments yields option chosen= update to 9 of the average yields from 2008 through Benton county payment yieds=47 bu/acre. Payment= payment rate * payment yield * base acres *0.85. *2014 price based on the November 2014 WASDE projection for 2014/15 marketing year. * price based on the average of USDA and FAPRI projected prices for 2015/16 to 2018/19. IFBF 2014 Farm Simulator, 12/31/2014

14 11% Supplemental Coverage Option Benton County: 2015 SCO Payments ($/acre) When Coupled with 75% RP- SOYBEANS 2015 Selected Harvest Price* Benton County: 2016 SCO Payments ($/acre) When Coupled with 75% RP- SOYBEANS 2016 Selected Harvest Price* $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 Min 35 $ 62 $ 59 $ 56 $ 53 $ 53 $ 53 $ 53 $ 53 Min 35 $ 63 $ 60 $ 57 $ 55 $ 55 $ 55 $ 55 $ $ - $ - $ - $ - $ 15 $ 38 $ 53 $ $ 4 $ 3 $ 3 $ 14 $ 37 $ 55 $ 55 $ $ - $ - $ - $ - $ - $ 4 $ 29 $ $ - $ - $ - $ - $ - $ 24 $ 50 $ $ - $ - $ - $ - $ - $ - $ 13 $ $ - $ - $ - $ - $ - $ 5 $ 32 $ 55 Median 55 $ - $ - $ - $ - $ - $ - $ - $ 27 Median 55 $ - $ - $ - $ - $ - $ - $ 18 $ $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ 12 $ $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ 4 $ $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ - $ 5 max 61 $ - $ - $ - $ - $ - $ - $ - $ - max 62 $ - $ - $ - $ - $ - $ - $ - $ 2 Benton County: 2017 SCO Payments ($/acre) When Coupled with 75% RP- SOYBEANS 2017 Selected Harvest Price* Benton County: 2018 SCO Payments ($/acre) When Coupled with 75% RP- SOYBEANS 2018 Selected Harvest Price* $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 $ $ $ 9.50 $ 9.00 $ 8.50 $ 8.00 $ 7.50 $ 7.00 Min 36 $ 64 $ 61 $ 58 $ 58 $ 58 $ 58 $ 58 $ 58 Min 36 $ 64 $ 61 $ 60 $ 60 $ 60 $ 60 $ 60 $ $ 1 $ 1 $ 7 $ 31 $ 54 $ 58 $ 58 $ $ 1 $ 1 $ 17 $ 41 $ 60 $ 60 $ 60 $ $ - $ - $ - $ - $ 18 $ 44 $ 58 $ $ - $ - $ - $ 1 $ 27 $ 53 $ 60 $ $ - $ - $ - $ - $ - $ 23 $ 50 $ $ - $ - $ - $ - $ 6 $ 33 $ 60 $ 60 Median 56 $ - $ - $ - $ - $ - $ 9 $ 37 $ 58 Median 56 $ - $ - $ - $ - $ - $ 19 $ 47 $ $ - $ - $ - $ - $ - $ 3 $ 31 $ $ - $ - $ - $ - $ - $ 9 $ 38 $ $ - $ - $ - $ - $ - $ - $ 24 $ $ - $ - $ - $ - $ - $ 3 $ 32 $ $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ 6 $ 37 max 62 $ - $ - $ - $ - $ - $ - $ - $ 21 max 62 $ - $ - $ - $ - $ - $ - $ 0 $ 31 Table Notes for SCO: Expected County Corn for Benton county (bushels) Expected County Soybeans for Benton county (bushels) Avg Spring Corn Price: $ 3.85 $ 3.99 $ 4.18 $ 4.26 Avg Spring Soybeans Price: $ 8.88 $ 9.24 $ 9.63 $ 9.83 Expected county yield is the trend yield using 34 years of county yield SCO Guarantee is estimated using the expected county yield and the base insurance price. However for RP coverage, when estimating the SCO Guarantee, use the larger of the base price of the harvest price. County Revenue is estimated using the and the harvest prince. When a payment is triggered (i.e., when County Revenue<86% * SCO Guarantee), then SCO Payment = minimum of: SCO trigger - County Revenue or revenue band =(86% - Coverage Level ) * SCO Guarantee. IFBF 2014 Farm Simulator, 12/31/2014