USDA Announces Record $13.8 Billion in ARC, PLC Payments for 2025 Crops, Boosting South Dakota Farmers
Northeast Radio SD News – South Dakota - The U.S. Department of Agriculture announced this week that federal revenue and price‑support programs will deliver an unprecedented $13.8 billion to eligible producers for the 2025 crop year — the largest annual payout since Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) were created in the 2014 Farm Bill.
U.S. Secretary of Agriculture Brooke L. Rollins said the record payments reflect strengthened commodity reference prices and updated program rules enacted under the Working Families Tax Cuts Act, signed last year.
“This historic economic support provides producers critical liquidity to cover operating costs, prepare for the next crop year and invest in their operations,” Rollins said in the USDA release.
The 2025 crop year marks the first time ARC and PLC payments have reached this level. While the gross total is $13.8 billion, USDA noted that payment‑limit reductions and a statutory 5.7% sequestration rate will apply.
Program Improvements Under the Working Families Tax Cuts Act
Beginning with the 2025 crop year, the law increases statutory reference prices, improves the effective reference price calculation, and raises the ARC/PLC payment limit from $125,000 to $155,000, with inflation adjustments. For 2025, the limit is $160,000.
Producers will also automatically receive whichever program — ARC or PLC — provides the higher payment rate for 2025, regardless of their election.
Sixteen commodities triggered PLC payments for the 2025 crop year, including corn, soybeans, wheat, canola, peanuts, rice, seed cotton, lentils, chickpeas, flaxseed, grain sorghum, safflower, and dry peas. ARC‑County payments will be issued as county‑level revenue calculations are completed.
Enrollment Open for 2026
USDA also reminded producers that ARC and PLC enrollment for the 2026 crop year is now open. The Working Families Tax Cuts Act added 30 million new base acres nationwide, though a 3.69% prorated reduction was applied because eligible acres exceeded the cap.
Producers should contact their local Farm Service Agency office to complete their 2026 elections.
South Dakota Reaction
Sen. John Thune said the announcement shows continued progress from the Working Families Tax Cuts Act.
“Great to see the historic ag investments from Republicans’ Working Families Tax Cuts continue to work for South Dakota farmers,” Thune said.
About ARC and PLC
ARC and PLC provide income support when crop prices or revenues fall below guaranteed levels. ARC coverage is based on county‑level or individual farm revenue, while PLC triggers when market prices fall below effective reference prices.
Producers with questions about payments or enrollment can contact their local FSA office or visit fsa.usda.gov/arc-plc.
