The Farm Service Agency (FSA) is expanding payment limitation and payment eligibility provisions for farmers beginning with the 2026 crop year, following updates authorized under the Working Families Tax Cuts Act. These changes will allow pass-through entities, such as limited liability companies (LLCs) and S corporations (S-Corps), and other similar entities, to qualify for higher payment limitations when multiple shareholders or members are actively engaged in farming. The update is intended to better reflect modern farm business structures and to provide more equitable access to farm program support.

The update also increases the payment limit for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. Beginning with the 2025 crop year, the ARC and PLC payment cap will increase from $125,000 to $155,000, with future increases adjusted annually for inflation. USDA also broadened the ways farm income can be counted toward adjusted gross income eligibility, allowing income from agritourism, direct-to-consumer sales and other farm-related activities to qualify. Farmers interested in the updated provisions must revise farm operating plans with FSA by Sept. 15, 2026. For operations participating in ARC and PLC or structured through business entities, the changes may expand payment opportunities and eligibility moving forward.

Read the full article to see how updated USDA payment rules may affect ARC, PLC and farm program eligibility.