ANNUAL UPDATE
Program updates, OBBBA provisions, and what they mean for your operation. Last updated March 2026.
These changes apply to all policies with a sales closing date on or after July 1, 2025.
The extra 10% premium discount for beginning farmers and ranchers now lasts for the first 10 years of operation, up from 5 years previously. Additional graduated subsidy in years 1–3.
Federal premium subsidies for individual crop insurance policies increased by 3–5 percentage points across all coverage levels. This means every farmer pays less for the same coverage.
The Supplemental Coverage Option (county-level top-up coverage) premium subsidy jumped from 65% to 80%. Same increase applies to ECO, MCO, and similar products. This makes supplemental coverage dramatically cheaper.
WFRP maximum coverage level increased from 85% to 90%, with the same subsidy rate as the old 85% level. Particularly valuable for diversified and specialty crop operations.
Ranchers now qualify for LFP payments after just 4 consecutive weeks of D2 (Severe Drought), down from 8. This means faster access to payments when drought hits.
Livestock killed by federally protected predators (wolves, grizzly bears, eagles) are now compensated at 100% of market value, up from 75%. Weather-related deaths remain at 75%.
Reference prices for covered commodities (corn, soybeans, wheat, etc.) were raised, increasing the likelihood and size of PLC and ARC payments. The payment limit was raised to $155,000 per person for commodity programs.
Producers must make an active ARC or PLC election each year. No more defaulting to the previous year’s choice. SCO is now decoupled from PLC — you can elect PLC and still use SCO.
Farms with recent planting history exceeding their current base acres may receive additional base acre allocations, expanding eligibility for ARC/PLC payments.
Conservation programs (EQIP, CSP, CRP), FSA loan programs, and disaster assistance continue under existing rules. A new farm bill is being discussed but has not passed. All current program structures remain in effect at least through the end of FY2026.
What this means for you: Apply for EQIP, CSP, and FSA loans now under current rules. Don’t wait for a new farm bill — the programs are open and funded.
A one-time payment for producers of covered commodities (corn, soybeans, wheat, cotton, rice, sorghum, and others) based on 2025 planted acres. Enrollment deadline: April 17, 2026. Payments are already being issued.
Action required: Ensure your 2025 acreage reports are accurate at your FSA office. Apply online or through your local FSA office.
$1 billion in bridge payments for specialty crops, sugar, and commodities not covered by FBA. Based on 2025 planted acres. Deadline to verify acreage: March 13, 2026. Payment rates coming end of March 2026.