USDA Announces $13.8B in 2025 ARC and PLC Payments

The U.S. Department of Agriculture (USDA) announced October 7 that its Farm Service Agency (FSA) expects the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs to generate approximately $13.8 billion in gross payments to eligible agricultural producers for the 2025 crop year.

According to USDA, the payment total is the largest annual payout since ARC and PLC were established under the 2014 Farm Bill.

“President Trump has been the biggest champion for American farmers, and today's announcement delivers nearly $14 billion in funding for rural America,” said Secretary of Agriculture Brooke L. Rollins. “Last July 4th President Trump signed the Working Families Tax Cuts Act into law and today we are acting on it, this will strengthen reference prices to better reflect today’s farm economy. This historic economic support provides producers critical liquidity to cover operating costs, prepare for the next crop year and invest in their operations. Thank you to all the Republicans who unanimously voted for this law and put food security and rural America first.”

What Farmers Need to Know

The $13.8 billion figure represents gross ARC and PLC payments. USDA noted that the total does not account for payment limitation reductions or the 5.7% sequestration rate required by law, which will be applied to all ARC and PLC payments.

The Working Families Tax Cuts Act (WFTCA) made several changes to ARC and PLC beginning with the 2025 crop year. Those changes include higher statutory reference prices and adjustments to the effective reference price calculation.

For the 2025 crop year, producers will automatically receive the higher payment rate between ARC and PLC, regardless of their program election.

The law also increased the ARC and PLC payment limit from $125,000 to $155,000 beginning with the 2025 crop year, with annual adjustments based on inflation. The payment limit for the 2025 crop year is $160,000.

Crops Triggering PLC Payments

Sixteen crops triggered a PLC payment for the 2025 crop year. They include chickpeas, both small and large; canola; corn; dry peas; flaxseed; grain sorghum; lentils; peanuts; rice, including long grain, medium grain, and japonica; safflower; seed cotton; soybeans; and wheat.

ARC-County (ARC-CO) payments are based on county-level revenue, so payments can trigger at the county level. FSA will issue payments to eligible producers as calculations are completed.

2026 ARC and PLC Enrollment

The election and enrollment period for the 2026 crop year is open.

The WFTCA added 30 million new base acres to farms nationwide. Because eligible acres exceeded the nationwide 30-million-acre cap, FSA applied an across-the-board, prorated reduction of 3.69% to newly allocated base acres.

The additional base acres affect ARC and PLC beginning with the 2026 crop year and future crop years.

Producers should make an appointment with their FSA county office to complete their 2026 ARC and PLC election and enrollment.

How ARC and PLC Work

ARC and PLC provide income support when covered crop prices or revenues fall below specified levels.

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 selected, ARC protection is based on either county-level revenue or the revenue of an individual farm.

Producers with questions about ARC-CO or PLC enrollment or payments can contact their local FSA county office. Producers who selected ARC-Individual (ARC-IC) and want to know which crops on the farm triggered a payment should also contact their local FSA county office. ARC-IC protects the revenue of the entire farm rather than individual crops.

More Information

USDA directs producers seeking information about ARC and PLC eligibility and payment calculations to the FSA ARC and PLC program resources or their local FSA county office.