U.S. Secretary of Agriculture Brooke L. Rollins announced this week 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. 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. 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. The following 16 crops triggered a PLC payment for the 2025 crop year: Chickpeas (small and large), canola, corn, dry peas, flaxseed, grain sorghum, lentils, peanuts, rice (long grain, medium grain, japonica), safflower, seed cotton, soybeans, and wheat. ARC-County (ARC-CO) payments are based on county-level revenue and therefore trigger at the county level. FSA will issue payments to eligible producers as calculations are completed.

As a reminder, the ARC and PLC election and enrollment period for the 2026 crop year is now open. ARC and PLC protect producers from substantial declines in crop prices or revenues. Producers annually elect and enroll for ARC or PLC coverage for eligible commodities. PLC provides income support when the effective price for a covered commodity falls below its effective reference price. ARC provides income support when actual crop revenue falls below a guaranteed level. Depending on the coverage elected, ARC protection is based on either county-level revenue or the revenue of an individual farm.  Producers with questions about their ARC-CO or PLC enrollment or payments should contact their local FSA county office.