Will we Get a $1.1 Billion PLC Surprise in the WASDE Today
If USDA increases the corn projected MYA price by $.10 it will reduce PLC payments by about $1.1 billion
USDA will release their monthly WASDE report today. Back in January they increased the yield for corn causing the price of corn to drop about 25 cents on the futures market. However, they raised the projected MYA price from $4.00 to $4.10.
Some readers ask what is the MYA price? This is USDA’s estimate of the actual cash price received by farmers during the marketing year. It is not the futures price. As you can see, they generally round this number, therefore, it is not a firm actual price, but rather a rounded final average price.
For Price Loss Coverage calculations, it is fairly easy to calculate how a 10-cent change in price will affect final numbers. Currently, there is about 91.6 million corn base acres registered for 2025 - 15.3 million acres in PLC and 76.3 million acres in ARC.
