Agricultural Commodities Price Enhancement Act

# Agricultural Commodities Price Enhancement Act (HR 2043) - Plain Language Summary **What the bill does:** This bill would increase the baseline prices (called "reference prices") used to calculate government payments to farmers under two existing farm support programs: the Agriculture Risk Coverage (ARC) program and the Price Loss Coverage (PLC) program. The higher reference prices would apply to five major crops: wheat, corn, soybeans, peanuts, and seed cotton. By raising these baseline prices, the bill would increase the amount of financial assistance farmers receive when crop prices drop or revenues fall short. **Who it affects:** The bill primarily affects farmers who grow the five specified commodities and participate in either the ARC or PLC programs. These programs are administered by the U.S.

Department of Agriculture's Farm Service Agency and are open to eligible agricultural producers. Taxpayers would also be affected, as higher payments would increase federal spending on farm support. **Current status:** The bill is currently in committee, meaning it has been introduced but has not yet been debated or voted on by the full House of Representatives. It was sponsored by Representative Donald G. Davis, a Democrat from North Carolina.