Delayed ARC and PLC Selection, New Payment Limits Impact and Base Acreage Increase

Key Takeaways:
  • Election deadlines for ARC and PLC are delayed into summer 2026 or later, giving producers more time to evaluate crop conditions, prices and weather before choosing a program.
  • Increased payment limits under the OBBBA mean more farmers may be impacted by limit thresholds, making it important to understand how entity structure and eligibility rules affect potential payouts.
  • Base acreage will increase automatically for most producers, with appeal and opt‑out options available if the assigned acreage doesn’t align with expectations.

 

Many of the changes to USDA programs that were enacted as part of the “One Big Beautiful Bill Act” (OBBBA) in July 2025 are in the implementation process now, and producers are finding there may be some growing pains associated with the programs in which they typically participate. One key callout up front: for the 2025 crop year, producers will receive the higher of ARC or PLC regardless of which program they elect. For the 2026 crop year, however, an affirmative election will be required and if no election is made, FSA will default the operation to the 2025 election.

Following is a short roundup of delays and other unknowns producers are facing during the first quarter of 2026 with their interactions with the Farm Service Agency (FSA), which administers USDA programs.

Delayed Deadline for ARC and PLC Selection

Most farmers are accustomed to making their Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) election by mid-March. However, this year the deadline has been pushed out to June, and may possibly be delayed further into September. Note: this is an estimated timeline as there has been no official timeline published.

We recommend you not rush to make an election, as much of the data that is needed to determine whether the ARC or PLC program will be most beneficial for you is not yet available and this year’s extended timeline may actually work in your favor.

While it’s best to wait until a deadline is formally announced, keep your crop data current so you’re ready to file your selection when you have a sharper view of how the crop year is shaping up. Contact an Adams Brown farm advisor for an analysis of your potential PLC payout based on current price data and the information from your Form 156; this analysis leverages both your farm-level details and county-level data to benchmark the projection.

Impact of Increased Payment Limits Under OBBBA

OBBBA increased reference prices and adjusted payment parameters for certain FSA programs, which makes it more important than usual to understand how payment limits apply to your operation and how current market conditions could influence potential benefits. With the potential for ARC and PLC payments to be larger than what many producers have seen historically, some farmers who have never had to monitor payment limits may want to pressure-test whether limits could become a factor this cycle.

Base Acre Expansion

A provision in the OBBBA authorizes an expansion of the base acreage for which farmers are eligible to receive payments under the ARC and PLC programs.

The expansion will potentially add 30 million base acres — about a 10% increase nationwide — with about 2 million of those base acres added in Kansas.

The base acre increase will happen automatically, meaning farmers do not need to do anything to qualify for increased base acreage. The FSA already has the data from each farmer to determine the allocation of additional base acres.

If you feel that your farm should receive more than the allotment you are given, you may be able to appeal, depending on whether any available acreage exists within the program.

Note: Producers that wish to not have additional base acres will be given 90 days to opt out.

Questions?

If you have questions about these or other FSA programs that affect your farming operation, contact an Adams Brown agriculture advisor.