Price Loss Coverage (PLC)

Price Loss Coverage (PLC) is a USDA program designed to protect farmers from falling crop prices. When market prices drop below a certain historical level, PLC provides financial assistance to help farmers maintain stability. This program is part of the farm safety net, offering farmers a buffer against significant losses, ensuring they can cover production costs and continue operating. Participants in the program select a coverage level based on their expected revenue, which helps mitigate the financial risks brought on by unpredictable market fluctuations.