By Andi Anderson
Farmers may soon receive valuable financial support through updated Farm Bill programs designed to strengthen farm income during periods of lower prices and revenue challenges. Many producers are expected to receive the first program payments for corn and soybean acres harvested in 2025, with payments scheduled to begin in October.
Recent changes under H.R.1, known as the One Big Beautiful Bill Act (OBBBA), have revised the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs to increase payment potential for participating farms. One of the most significant updates is that farms will automatically receive whichever program delivers the higher payment rate, helping producers benefit from the most favorable support available.
The PLC program focuses on protecting farmers against declining market prices. Payment eligibility is determined by comparing the market-year average (MYA) price with the statutory or effective reference price, whichever is higher. If the market price falls below the reference price, a payment may be issued.
For the 2025 crop year, the effective reference price is estimated at $4.42 per bushel for corn and $10.71 per bushel for soybeans. Current projections place the MYA price at $4.20 per bushel for corn and $10.42 per bushel for soybeans. Although final prices have not yet been determined, these estimates suggest that support payments could become available to eligible producers.
The ARC-County (ARC-CO) program offers a different type of protection by focusing on farm revenue rather than price alone. The program uses benchmark prices and county yield data to establish a guaranteed revenue level. Payments may be triggered if actual county revenue falls below that benchmark due to lower prices, reduced yields, or a combination of both factors.
For 2025, benchmark prices are estimated at $5.03 per bushel for corn and $12.17 per bushel for soybeans. Both PLC and ARC-CO payments are calculated on 85% of base acres and use an Olympic five-year average when determining payment calculations.
Agricultural analysts believe 2025 could mark the beginning of a three-year period in which both programs may generate payments for producers. In previous years, payments from either program were less consistent, although ARC-CO often provided support when assistance was available.
To help farmers evaluate potential benefits, estimated payment maps have been developed using USDA information and payment projections. These tools allow producers to view county-level estimates and compare expected payment rates for different crops and production systems, including irrigated and non-irrigated acres.
The updated programs provide farmers with important financial planning information and may offer meaningful support as producers navigate changing market conditions. By understanding estimated payment opportunities, growers can better prepare for the upcoming payment cycle and make informed management decisions for their operations.
Categories: Michigan, Government & Policy