Title I Commodities Explained: Reference Prices, ARC, PLC, Marketing Loans

TL;DR: Title I (Commodities) of H.R. 7567 sets the farm safety net for covered commodities like corn, soybeans, wheat, rice, and peanuts. It includes Price Loss Coverage (PLC), Agriculture Risk Coverage (ARC), reference prices, and marketing assistance loans. Specific dollar figures and changes versus the 2018 Farm Bill are to be confirmed.

Key takeaway

Title I is the commodity safety net, paying farmers through PLC and ARC when prices or revenues fall below set benchmarks.

What this section does

Title I (Commodities) establishes the income-support programs available to producers of covered commodities. The two central programs are Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC).

PLC pays producers when the average market price for a covered commodity falls below a set "reference price." ARC pays producers when actual crop revenue falls below a guaranteed benchmark revenue level, which is based on historical yields and prices.

Marketing assistance loans, also part of Title I, let producers take out a loan using their harvested crop as collateral. This gives farmers short-term cash flow and the flexibility to market their crop later rather than selling immediately at harvest.

The specific reference price levels, ARC benchmark formulas, and marketing loan rates in H.R. 7567, along with how they compare to the 2018 Farm Bill, are to be confirmed. You can track confirmed provisions through our full bill summary and our what's new vs 2018 page as details are verified.

What it means

Title I matters most to producers of program crops, including corn, soybeans, wheat, rice, peanuts, and other covered commodities. These programs form the core of the federal farm safety net.

For affected producers, the practical effects work like this:

• PLC participants receive payments tied to whether market prices drop below the statutory reference price for their crop.
• ARC participants receive payments tied to whether revenue falls below a moving benchmark based on recent yields and prices.
• Marketing loan users gain access to short-term financing secured by their stored crop, supporting cash flow at harvest.

Producers generally must elect between PLC and ARC for their covered commodities, an election that shapes how their safety net responds to price versus revenue declines. The exact election rules and timing under H.R. 7567 are to be confirmed.

Ag lenders and commodity-group staff watch Title I closely because reference price levels and loan rates affect farm income projections and borrowing capacity. For a sense of how Title I fits into overall spending, see our funding breakdown.

What's next

As of June 17, 2026, the confirmed details of Title I in H.R. 7567, including final reference price levels and any changes from the 2018 Farm Bill, are to be confirmed. Producers and lenders should treat specific numbers as pending until verified against the bill text.

Implementation of Title I programs typically falls to the U.S. Department of Agriculture (USDA), specifically the Farm Service Agency (FSA), which administers PLC, ARC, and marketing loans. Any rulemaking, signup windows, and election deadlines would follow enactment.

The bill's status in the legislative process, including any Senate action, can be followed through our Senate status page and our timeline and status tracker. We will update this explainer as confirmed Title I provisions become available.

Frequently asked questions

What is the difference between ARC and PLC?

Price Loss Coverage (PLC) pays when the average market price for a covered commodity falls below a set reference price. Agriculture Risk Coverage (ARC) pays when actual crop revenue falls below a benchmark revenue level based on historical yields and prices. PLC responds to price drops, while ARC responds to revenue drops. Producers generally elect one program per covered commodity.

What is a reference price in the Farm Bill?

A reference price is a statutory price benchmark for a covered commodity used in the Price Loss Coverage (PLC) program. If the average market price for that commodity falls below its reference price, PLC participants receive a payment on the difference. The specific reference price levels in H.R. 7567 and any changes from the 2018 Farm Bill are to be confirmed.

Which crops are covered under Title I commodity programs?

Title I covers program crops known as covered commodities, which historically include corn, soybeans, wheat, rice, peanuts, and other major field crops. These are the crops eligible for Price Loss Coverage (PLC), Agriculture Risk Coverage (ARC), and marketing assistance loans. The complete list of covered commodities under H.R. 7567 is to be confirmed against the bill text.

What is a marketing assistance loan?

A marketing assistance loan lets a producer borrow money using a harvested covered commodity as collateral. This provides short-term cash flow at harvest and gives the producer flexibility to market the crop later rather than selling immediately. Marketing loans are part of Title I and are administered by the Farm Service Agency (FSA). Loan rates under H.R. 7567 are to be confirmed.

Who administers Title I commodity programs?

The U.S. Department of Agriculture (USDA) administers Title I commodity programs, primarily through the Farm Service Agency (FSA). The FSA handles producer elections between Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC), processes payments, and manages marketing assistance loans. Implementation details, signup windows, and deadlines under H.R. 7567 follow enactment and are to be confirmed.

How does Title I in H.R. 7567 compare to the 2018 Farm Bill?

The specific changes in Title I of H.R. 7567 compared to the 2018 Farm Bill, including reference price levels, ARC benchmark formulas, and marketing loan rates, are to be confirmed. Title I continues the core safety net structure of Price Loss Coverage (PLC), Agriculture Risk Coverage (ARC), reference prices, and marketing loans. Verified changes will be documented as bill details are confirmed.