ARC and PLC payments reach $13.8 billion for 2025 crop year
(Photo by Raphael Rychetsky via Unsplash.)
U.S. Secretary of Agriculture Brooke Rollins announced Oct. 7 the Farm Service Agency expects Agriculture Risk Coverage and Price Loss Coverage programs to generate approximately $13.8 billion in gross payments to eligible agricultural producers for the 2025 crop year.
The U.S. Department of Agriculture said the amount is the largest annual payout since ARC and PLC were established as commodity safety net programs under the 2014 farm bill.
“This historic economic support provides producers critical liquidity to cover operating costs, prepare for the next crop year and invest in their operations,” Rollins said.
The $13.8 billion figure is a gross payment amount. USDA said payment limitation reductions and the 5.7% sequestration rate required by law will reduce payments issued to producers.
According to a USDA press release, the Working Families Tax Cuts Act increased statutory reference prices and changed the effective reference price calculation for ARC and PLC beginning with the 2025 crop year.
For 2025 only, producers will automatically receive the higher payment rate between ARC and PLC, regardless of the program they elected.
The law also increased the ARC and PLC payment limit from $125,000 to $155,000 beginning with the 2025 crop year, with annual inflation adjustments. The payment limit for 2025 is $160,000.
Sixteen crops received PLC payments for the 2025 crop year: Small and large chickpeas, canola, corn, dry peas, flaxseed, grain sorghum, lentils, peanuts, long-grain, medium-grain and japonica rice, safflower, seed cotton, soybeans, and wheat.
The WFTCA also added 30 million base acres nationwide. Because eligible acres exceeded the 30-million-acre cap, FSA applied a 3.69% across-the-board reduction to newly allocated base acres.
Lacey Vilhauer can be reached at 620-227-1871 or [email protected].
