The Biggest Change to Farm Programs in Years

Last Updated: March 2026 | Source: OBBB legislative text, RMA bulletins, USDA implementation guidance

Free guide, not financial or legal advice. Program details are still being implemented , verify with your local USDA office or crop insurance agent. Something wrong? Let us know.

Crop Insurance Got Cheaper

Beginning Farmers: Call Your Agent This Week

Before: 5 years of premium discounts. A flat 10 percentage points off.

Now: 10 years of discounts. And they're bigger when you need them most:

Real example: A beginning farmer in central Kansas buying SCO on 800 acres of corn. Under the old rules, SCO cost him 35% of the premium , roughly $4,200/year. Now it costs him 20%. In his first two years, with the extra beginning farmer discount on top, he's paying closer to $1,500. That's $2,700 back in his pocket every year, for doing nothing different except being enrolled.

If you aged out under the old 5-year rule but you're under 10 years of farming, you may qualify again. Ask your agent.

What to say when you call: “I want to see my beginning farmer premium discount under the new OBBB rules. Am I still eligible for the extended 10-year window?”

→ Full Beginning Farmer Guide

SCO Is Nearly Free Now

Before: 65% subsidy. Couldn't buy it if you elected ARC.

Now: 80% subsidy. You can buy it regardless of your ARC/PLC election.

That means you're paying 20 cents on the dollar for coverage that fills the gap between your individual policy and 86% of expected county revenue. At that price, most operations should at least run the numbers.

What to say: “What would SCO cost me at the new 80% subsidy rate? And now that it's decoupled from ARC, does it make sense for me to carry both?”

→ ARC vs PLC Calculator : updated with OBBB rules

Subsidies Went Up at Every Coverage Level

The government now pays more of your premium across the board , every coverage level, every unit structure. If you've been carrying 70% coverage because 75% felt too expensive, the gap just narrowed.

What to say: “Show me what my premium looks like at one coverage level higher than I'm carrying now, with the new subsidy rates.”

→ Coverage Explorer : see premiums at every level for your county

Whole-Farm Revenue Protection Goes to 90%

WFRP max coverage went from 85% to 90%, at the same subsidy rate. If you're a diversified, organic, or specialty crop operation using WFRP, that's five extra points of coverage at no additional cost.

ARC & PLC : Bigger Payments, New Acres

ARC Kicks In Sooner and Pays More

Before: 86% revenue guarantee, 10% max payment.

Now: 90% guarantee, 12% max payment.

A corn farmer in McLean County, Illinois who would have barely missed the old 86% trigger in a mediocre price year now gets a payment. And when payments do trigger, they're up to 20% larger.

PLC Reference Prices Went Up

Higher reference prices mean PLC payments trigger more easily when market prices drop. The formula change is technical , what matters is the check is bigger.

2025 Only: You Get the Best of Both

For the 2025 crop year, USDA automatically pays you whichever is higher , ARC or PLC : for each commodity. No election needed. This is a one-time provision. Starting 2026, you have to choose again.

DMC Tier I Expanded: 5M → 6M Pounds

Dairy Margin Coverage Tier I, the heavily subsidized first slice of production history, was expanded from the first 5 million pounds to the first 6 million pounds of an operation's production history. Tier I premiums at $9.50 coverage stay at $0.1500/cwt, so the additional 1 million pounds is covered at the same low rate. For dairies above the old 5M ceiling, this means more milk under the cheaper tier and a smaller share carried at the higher Tier II premiums.

Payment Limit: $125K → $155K

More room before you hit the cap.

Up to 30 Million New Base Acres

If your farm produces program crops but doesn't have base acres, you may now qualify. Based on your 2019–2023 planting history. Contact FSA.

What to say: “I need to review my ARC/PLC election under the new OBBB rules. Can you show me the comparison with the updated guarantee and reference prices?”

→ ARC vs PLC Calculator

Disaster Payments : Faster Money

Drought Payments Trigger a Month Sooner

Before: Livestock Forage Disaster Program (LFP) required 8 consecutive weeks at D2 drought.

Now: 4 consecutive weeks.

One thing that didn’t change: those weeks have to fall during your county’s normal grazing period for the pasture type you run. FSA state offices publish those dates. Native pasture in the Northern Plains runs roughly May through October; parts of the Southwest run year-round. D2 in February in Nebraska doesn’t start the clock , only weeks inside the window count.

A cow-calf operation in Harney County, Oregon that hit D2 in early August used to wait until October for the payment to trigger. Now it triggers in September , a month sooner, when you're deciding whether to sell pairs or buy hay.

→ Drought Dashboard : check your county right now

→ Pulse : track it daily

Predator Kills: Full Market Value

Before: LIP paid 75% of market value for livestock killed by predators.

Now: 100%.

You lose a $2,800 cow to wolves. Old rules: $2,100. New rules: $2,800. Report to FSA within 30 days. Document everything , photos, vet reports, predator evidence.

→ Emergency Triage : what to do in the first 48 hours

Conservation : More Money, No Cap

EQIP: $18.5 billion through 2031. The old $450,000 payment cap has been removed , there is no per-person EQIP payment limit. If you've been waiting to apply for a large infrastructure project, the cap is gone.

CSP: $8.1 billion through 2031.

Income restriction loosened: If 75% or more of your income comes from farming, you qualify regardless of total AGI. The old $900K hard cap is gone for most producers.

One caveat: the IRA's earmark for climate-specific practices was removed. The money is still in conservation programs, but it's no longer restricted to carbon and nitrogen practices. Depending on what you're applying for, this could help or hurt your ranking.

→ EQIP Guide | CSP Guide | Program Stacking Calculator

Estate Tax : The Sunset Is Gone

The estate and gift tax exemption was going to drop from $13.9 million to roughly $7 million per person in 2026. A lot of ranch families were concerned , plenty of operations have land values north of $7 million.

Now: Exemption is $15 million per individual ($30 million married), permanent, indexed for inflation.

Other tax provisions that were set to expire are now permanent: the current income tax brackets, the standard deduction increase, the 20% QBI deduction for pass-through entities (most farm LLCs and partnerships), and Section 179 expensing.

What to do: If you rushed an estate plan to beat the sunset, talk to your tax professional , the math changed. If you haven't done estate planning at all, the $15 million gives you breathing room, but breathing room is not a plan.

What's NOT in the Bill

• CRP was not reauthorized. Existing contracts continue. A separate continuing resolution extends CRP authority through September 30, 2026, and USDA opened Continuous and General sign-ups for FY2026. Long-term reauthorization depends on a future farm bill. CRP Guide
• A standalone Farm Bill is still being discussed to fill the gaps. Timing is unclear.

What Most People Get Wrong

1. Not reviewing existing coverage after the law changed. The subsidy rates, beginning farmer discounts, and ARC/PLC formulas all shifted. If you're carrying the same election and coverage level you had before July 2025, you haven't checked whether the new math favors a different choice.

2. Assuming their agent already adjusted everything. Your crop insurance agent can't change your coverage level or ARC/PLC election without you asking. The new rates apply automatically, but the decisions about what to carry are still yours.

3. Missing the beginning farmer window. If you aged out under the old 5-year rule but have been farming fewer than 10 years, you may qualify again. This won't be flagged for you automatically.

4. Not filing for all applicable disaster programs. When a drought or wildfire hits, most ranchers file for one program. LFP, ELAP, LIP, and ECP can all apply to the same event for different types of losses. The 30-day reporting windows don't wait.

What to Do

If you're a beginning farmer (under 10 years):
Call your crop insurance agent. Say: “I want to see what my premium looks like under the new OBBB beginning farmer rules.” If they don't know what changed, find a new agent.

If you buy crop insurance:
Ask about SCO at the new 80% subsidy. Ask what your premium looks like one coverage level higher. The math changed , you might be underinsured for less than you think.

If you have an ARC/PLC election:
Review it with FSA. ARC is stronger now. PLC reference prices are higher. If you haven't re-elected since the OBBB changes took effect, you should check whether a different choice pays more.

If you're in drought country:
LFP can trigger at 4 weeks now, not 8 , but only for weeks that fall inside your county’s normal grazing period. Track your county's drought monitor, know your grazing-period dates, and contact FSA to confirm eligibility.

→ Drought Dashboard | Pulse

If you lost livestock to predators:
File with FSA within 30 days. You can get 100% now, not 75%. Document everything.

→ Emergency Triage

If you're planning conservation work:
EQIP caps are gone. Funding is reauthorized through 2031. Apply.

→ EQIP Guide

If you need to revisit your estate plan:
The sunset is gone. $15M exemption is permanent. Talk to your tax professional about what that changes.

This is the biggest change to farm programs in over two decades. Most of it rewards the same operation for the same work , if you update your elections and coverage.

→ Take the Free Screener : find every program you qualify for in 2 minutes

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