Some welcome financial news for farmers as harvest continues across the region.
On October 7, the U.S. Department of Agriculture (USDA) announced that approximately $13.8 billion in payments will be generated through the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2025 crop year.
That's the largest annual payout since these programs were established under the 2014 Farm Bill, providing important financial support to farmers facing lower commodity prices and challenging farm economics.
What Does This Mean for Your Farm?
The answer may depend on where you farm and what crops you grow.
For instance, in Murray County, Minnesota, PLC payments are expected for corn and soybeans, while wheat could qualify for a higher payment through ARC, depending on county-level calculations.
But what about your county?
ARC payments are based on revenue calculations that can vary by county, while PLC payments are tied to commodity prices. That means farmers in neighboring counties may see different results.
For the 2025 crop year, eligible producers will automatically receive the higher payment rate of either ARC or PLC, regardless of their original program election.
Not sure what this means for your county or your operation? Give KDL Insurance a call! We'd be happy to help you look up the available information and better understand what payments may apply to your farm.
When Will Farmers Receive Their Payments?
The Farm Service Agency (FSA) will issue payments to eligible producers as calculations are completed.
The announced $13.8 billion represents gross payments nationwide. Individual payments are subject to applicable payment limitations and a required 5.7% sequestration reduction.
Actual payments will vary based on factors including commodity, farm base acres, program calculations and eligibility.
Looking Ahead to 2026
Enrollment for the 2026 ARC and PLC programs is now open.
Additional base acres have also been allocated nationwide beginning with the 2026 crop year, potentially affecting future program benefits for eligible farms.
Farmers should contact their local FSA office to review their information and complete the necessary election and enrollment process.
We're Here for Our Farm Families
At KDL Insurance, we know every dollar matters, especially during harvest when farmers are balancing input costs, commodity prices, weather challenges and plans for the year ahead.
ARC and PLC are USDA programs administered through the Farm Service Agency. But that doesn't mean we can't help!
We work with farm families across multiple counties, and we want you to have the information you need to make informed decisions.
Whether you're wondering what payments are expected in your county, need help finding the latest PLC information or simply want to better understand the announcement, give us a call. We're happy to help you look into it.
After all, being there for our farm families means more than just helping with insurance. It means being a resource you can count on, through every season.