The U.S. Department of Agriculture’s Farm Service Agency (FSA) is expanding payment limitation and payment eligibility provisions that affect program payments including allowing for the equitable treatment of business entities. Additionally, producers will benefit from an increased payment limitation for certain programs, and a broader definition of farming income that will result in more exceptions to income limitations.
“The 2026 program year will be a monumental change for farmers and ranchers who can now structure their farm entities to benefit from the legal protections of certain business structures without limiting their access to the farm safety net,” said Bill Beam, FSA Administrator. “Producers have had to make difficult decisions for far too long when it comes to structuring their operations. The administration is proud to give farmers and ranchers more options to build and protect their legacy for generations to come while receiving full support from USDA.”
These changes were outlined in the Working Families Tax Cuts Act which provides a large investment in American agriculture by improving eligibility provisions, the farm safety net, disaster assistance, and price support programs. USDA previously announced that this fall, producers will benefit from increased reference prices for major commodities. Today’s announcement gives producers more flexibility in structuring their operations and provides a stronger safety net.
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