U.S. Secretary of Agriculture Brooke L. Rollins announced that the Farm Service Agency’s Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) will generate approximately $13.8 billion in gross payments to eligible agricultural producers for the 2025 crop year; the largest annual payout by far since these key safety net programs were established in the 2014 Farm Bill.
“President Trump has been the biggest champion for American farmers, and today's announcement delivers nearly $14 billion in funding for rural America,” said Secretary of Agriculture Brooke L. Rollins. “Last July 4th President Trump signed the Working Families Tax Cuts Act into law and today we are acting on it, this will strengthen reference prices to better reflect today’s farm economy. This historic economic support provides producers critical liquidity to cover operating costs, prepare for the next crop year and invest in their operations. Thank you to all the Republicans who unanimously voted for this law and put food security and rural America first.”
The 2025 crop year stands alone in the history of ARC and PLC since Congress created the programs as key components of the commodity safety net in the Agricultural Act of 2014. Since 2015, no previous crop year has generated payments approaching this level. While ARC and PLC payments total $13.8 billion, producers are reminded that this does not account for payment limitation reductions and the 5.7% sequestration rate required by statute that will be applied to all ARC and PLC payments.
Working Families Tax Cuts Act Improvements
The Working Families Tax Cuts Act (WFTCA) strengthens ARC and PLC beginning with the 2025 crop year, including higher statutory reference prices and improvements to the effective reference price calculation. Additionally, for the 2025 crop year only, producers will automatically receive the higher payment rate of either ARC or PLC, regardless of their program election. The WFTCA also increases the ARC and PLC payment limit from $125,000 to $155,000, starting with the 2025 crop year with annual adjustments based on inflation. The payment limit for the 2025 crop year is $160,000.
Source : usda.gov