USDA Updates Disaster Assistance and Commodity Loan Programs

The U.S. Department of Agriculture (USDA) has announced several changes to disaster assistance and commodity loan programs as part of the Working Families Tax Cuts Act, including updates affecting livestock producers, orchardists, nursery tree growers and cotton and sugar producers.

The changes, announced July 8 by U.S. Secretary of Agriculture Brooke L. Rollins, are intended to strengthen farm safety net programs and expand support available through the USDA's Farm Service Agency (FSA).

“As we celebrate our nation's 250th birthday, we also celebrate our all-important farmers,” said Secretary Rollins. “The Trump administration is committed to ensuring the economic success of farmers and ranchers who rely on a strong safety net when natural disasters impact their infrastructure or when market prices affect their profitability. These producers need and deserve assistance that works for them, not against them.”

ELAP expands coverage for fish and honeybee losses

The Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) is expanding benefits beginning January 1, 2026.

Under the changes, ELAP will provide assistance for farm-raised fish losses caused by birds that feed on fish, with a payment rate of $600 per acre of farm-raised fish. The program will also use a normal mortality rate of 15% for eligible honeybee colony losses starting with 2026 losses.

Drought assistance becomes available sooner

The Livestock Forage Disaster Program (LFP) is lowering the threshold for producers to qualify for drought assistance.

Beginning retroactively January 1, 2026, producers can qualify for a one-month payment after four consecutive weeks of severe drought conditions, classified as D2 on the U.S. Drought Monitor, instead of the previous eight-week requirement. A two-month payment will be available if D2 drought conditions continue for seven out of eight consecutive weeks during the normal grazing period.

Livestock indemnity payments increase

The Livestock Indemnity Program (LIP) is increasing compensation for certain losses.

Starting retroactively January 1, 2026, producers will receive 100% of market value for livestock losses caused by predation from endangered or protected animals, up from the previous 75%.

The program will also allow producers to document regional price premiums that exceed national average market prices and will cover unborn livestock losses that occurred on or after January 1, 2024. According to USDA, payments for eligible 2024 and 2025 unborn livestock losses will generally be made automatically based on information already on file with FSA.

Tree Assistance Program changes

The Tree Assistance Program (TAP) is removing the 15% normal mortality rate requirement beginning January 1, 2026.

USDA is also increasing reimbursement rates for activities such as pruning and tree removal and extending the implementation period to 24 months, with an option for additional time if needed.

Commodity Loan Program Updates

Marketing Assistance Loans (MALs) and Loan Deficiency Payments (LDPs) have been reauthorized through crop year 2031, and loan rates for all eligible commodities will increase beginning in 2026.

USDA is also making several changes for cotton and sugar producers, including:

• Increasing the cotton storage credit cap for the 2026 crop.
• Changing how prevailing world market prices for upland cotton are calculated, retroactive to July 4, 2025.
• Creating a weekly prevailing world market price for extra-long staple cotton.
• Authorizing refunds of upland cotton loan redemptions when the Adjusted World Price declines within 30 days of loan repayment.
• Extending the sugar program through 2031 and increasing loan rates for raw cane and refined beet sugar.

Additional Information

USDA said producers interested in applying for disaster assistance, Marketing Assistance Loans or other FSA programs should contact their local FSA office. Additional program information is available through the Farm Service Agency at fsa.usda.gov.