By Andi Anderson
The U.S. Department of Agriculture (USDA) has started distributing Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) payments for the 2025 crop year. These payments are expected to reach approximately $13.8 billion, making them the largest annual payout since the programs were introduced under the 2014 Farm Bill.
According to Farm News Media’s Dennis Rudat, USDA began processing the payments and sending them through its National Payment Service system for certification. Producers with completed paperwork can expect funds to begin reaching their bank accounts shortly.
USDA Under Secretary for Farm Production and Conservation Richard Fordyce explained that changes in federal legislation contributed to the higher payment levels. Increased statutory reference prices and a higher payment limit under the Working Families Tax Cuts Act significantly boosted potential payouts for eligible producers.
Fordyce emphasized the timing of the payments, stating, “I always have to remind people that ARC and PLC are a year delayed. So we’re paying this October the ARC and PLC payments for the 2025 crop.”
The payment limit increased from $125,000 to $155,000, with inflation adjustments raising the 2025 crop-year cap to $160,000. While the total payment figure appears substantial, officials noted that it represents a gross amount before considering overall farm expenses.
University economists from the University of Illinois, University of Minnesota, and Ohio State University analyzed USDA data and provided estimates for several major commodities. Corn payments are projected to average about $51 per base acre, soybeans $29 per base acre, wheat $47 per acre, seed cotton $119 per base acre, and peanuts $244 per base acre.
Although these payments provide important financial support, experts caution that they will not fully offset rising production expenses. USDA forecasts that fertilizer, fuel, marketing, storage, and transportation costs will increase significantly during the 2026 crop season. Total production expenses are expected to reach nearly $493 billion, representing a substantial increase from the previous year.
The impact of higher costs may vary across states. Some producers, particularly specialty crop growers, may face rising fuel expenses while receiving limited benefits from ARC and PLC programs. This highlights ongoing differences in support among agricultural sectors.
In addition to ARC and PLC payments, USDA is issuing approximately $1.8 billion in Conservation Reserve Program (CRP) and Grassland CRP payments for 2026. These payments support landowners and producers who dedicate land to conservation activities.
Agriculture Secretary Brooke Rollins highlighted the importance of Grassland CRP support for livestock producers, stating, “As we continue to work to rebuild the American cattle herd, today’s announcement will help continue this effort by protecting nearly 1 million acres of grazing land for our ranchers.”
The combined payments reflect USDA’s continuing efforts to provide financial stability, conservation support, and risk management tools for American farmers and ranchers facing changing economic conditions.
Photo Credit: usda
Categories: Illinois, Government & Policy