USDA projects record gross payments of about $13.8 billion from the ARC and PLC programs for the 2025 crop, the largest annual payout since 2014. The funds will begin to be credited to producers early next week.
USDA's Farm Service Agency (FSA) estimates that the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs will generate approximately $13.8 billion in gross payments to eligible agricultural producers for the 2025 crop year. It is the largest annual payout by a wide margin since these key safety net programs were created in the 2014 farm bill.
In an Oct. 7 notice to state and county FSA offices, Deputy Administrator of Farm Programs Jared Hagert advised staff that USDA had begun processing 2025 ARC and PLC payments and that they would start being released into the National Payment Service (NPS) for certification and signature. USDA confirmed that "producers can expect to see payments begin to hit bank accounts early next week, assuming all documentation is properly filed at the FSA office."
USDA Under Secretary for Farm Production and Conservation Richard Fordyce attributed much of the increase to the Working Families Tax Cuts Act, which raised statutory reference prices. "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," he said. The law also raised the payment limit from $125,000 to $155,000, with annual adjustments for inflation; the limit for the 2025 crop year is $160,000. Fordyce explained that the combination of higher reference prices and a higher limit pushes the headline figure up, but he noted that it is a gross figure.
According to estimates by University of Illinois Farmdoc Daily economists, prepared together with colleagues at the University of Minnesota and Ohio State University, corn payments are projected to average $51 per base acre, down from $62 in the original forecast. Soybeans are estimated at $29 per base acre, wheat at $47, seed cotton at $119 and peanuts at $244.
Payments will vary by state and county. The estimates were published after USDA released marketing year average prices for nearly all eligible commodities.
ARC and PLC payments can offset part of the increase in diesel prices, but they will not cover the overall rise in expenses for the 2026-27 crop. USDA projected that fertilizer, fuel, marketing, storage and transportation costs account for $11.1 billion in higher costs for 2026. Overall, total production expenses for 2026 are projected at $492.8 billion, up $21.2 billion from the previous year, equivalent to 4.5%.
Some states will bear the higher fuel costs without comparable support. California, for example, faces the highest fuel costs in the country, but many of the state's specialty crop producers do not have access to ARC and PLC payments. California producers are projected to receive $242.6 million in ARC and PLC payments, while diesel costs will amount to at least $1.19 billion, a negative disparity of $947.4 million.
USDA also announced the disbursement of approximately $1.8 billion in Conservation Reserve Program (CRP) and Grassland CRP payments to producers and landowners who idle land to achieve conservation goals in 2026.
These payments include Grassland CRP payments, which play an important role in the Trump administration's Ranchers First initiative to rebuild the cattle herd. "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," said Agriculture Secretary Brooke Rollins.
