Big Beautiful Bill Series: Farm Programs and Farm Bill Funding
Is the Big Beautiful Bill a boom or bust for U.S. farm programs?
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is an 870-page legislative package that combines farm program funding, tax reforms, border security investments, and more into one robust bill.
While it lacks the comprehensive reach of a traditional five-year farm bill, the ‘Big Beautiful Bill’ injects $65.6 billion in new spending for farm programs and extends key tax provisions like the 2017 Tax Cuts and Jobs Act and the 45Z biofuels credit.
This legislation represents the largest investment in farm programs since 2002. For producers, understanding what it includes—and what it leaves behind—is essential in seizing the opportunities that come with it.
To help producers make the most of the funding and policy shifts in this bill, AgAmerica’s team analyzed the bill’s text with an emphasis on Title I, which addresses agriculture, nutrition, and forestry. From this analysis, we’re launching a three-part series to break down what the ‘Big Beautiful Bill’ means for commodity farm programs, tax season, and your operation’s future.
- Part One: Farm Programs and Farm Bill Funding (you are here)
- Part Two: Tax Policy Updates for Landowners
- Part Three: Protecting American Farmland and Forests
Let’s dive in.
Farm Programs Impacted by the Big Beautiful Bill
At its core, the ‘Big Beautiful Bill’ offers expanded commodity program payments, enhanced crop insurance support, and new investments in agricultural trade and research.
However, to implement this historic investment in some areas, funding fell short in others. Here’s what we know so far based on the legislative text.
Commodity Support Farm Programs
Base acres, a longstanding concern among producers, got long-awaited attention in this bill. Up to 30 million additional acres are now eligible for enrollment in the Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs.
Additionally, reference prices for both ARC and PLC farm programs will increase when payments roll out in 2026. The bill contains language indicating that the USDA will automatically apply the higher of the updated payment rate for that first year, then farmers will be required to select a program in the following years.
The impact of these changes varies depending on the commodity. For example, major row crops like corn, wheat, and oats will see smaller per-acre gains than cotton, peanuts, and rice, which benefit more from the revised reference prices.
Reference Price Updates for Agricultural Commodities
| Commodity | Old Price | New Price | Change |
| Wheat | $5.50 /bu | $6.35 /bu | +$0.85 |
| Corn | $3.70 /bu | $4.10 /bu | +$0.40 |
| Grain Sorghum | $3.95 /bu | $4.40 /bu | +$0.45 |
| Barley | $4.95 /bu | $5.45 /bu | +$0.50 |
| Oats | $2.40 /bu | $2.65 /bu | +$0.25 |
| Long Grain Rice | $14.00 /cwt | $16.90 /cwt | +$2.90 |
| Medium Grain Rice | $14.00 /cwt | $16.90 /cwt | +$2.90 |
| Soybeans | $8.40 /bu | $10.00 /bu | +$1.60 |
| Other Oilseeds | $20.15 /cwt | $23.75 /cwt | +$3.60 |
| Peanuts | $535.00 /ton | $630.00 /ton | +$95.00 |
| Dry Peas | $11.00 /cwt | $13.10 /cwt | +$2.10 |
| Lentils | $19.97 /cwt | $23.75 /cwt | +$3.78 |
| Small Chickpeas | $19.04 /cwt | $22.65 /cwt | +$3.61 |
| Large Chickpeas | $21.54 /cwt | $25.65 /cwt | +$4.11 |
| Seed Cotton | N/A (no statutory price) | $0.42 /lb | Newly included |
For dairy operations, the bill modernizes the Dairy Margin Coverage (DMC) program with the following updates:
- Increases coverage of up to six million pounds of milk for both Tier I and Tier II producers.
- Sets production history based on the highest milk marketings from 2021 to 2023.
- Offers a 25 percent discount for one-time premium elections covering 2026–2031.
Other key updates to commodity support farm programs include:
- Payment limits increased from $125,000 to $155,000 per individual and $310,000 per couple, with future adjustments tied to inflation.
- Elimination of income caps for producers deriving at least 75 percent of their income from agriculture or forestry.
One notable change in the One Big Beautiful Bill Act that’s making a bit of a stir is the amended payment limit provisions for farm entities. Under Section 10306, the “qualified pass-through entity” was added to include partnerships, S corporations, LLCs not electing corporate status, and joint ventures. Critics of this change call it an “expanded loophole” that would concentrate the use of federal money by allowing larger farm operations to avoid the federal fund limit and incentivize further farm industry consolidation. There is also concern this change could drive up cash rents and land values, creating financial hardship for tenant farmers.
Agricultural Disaster Assistance
It remains unclear if commodity support farm program updates will eliminate the need for ad hoc disaster payments in the future. For now, there are several noteworthy updates to agricultural disaster assistance that U.S. producers should be aware of in the ‘Big Beautiful Bill’. Protections under the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP) have been enhanced to include:
- Full indemnities for livestock lost to predation and 75 percent compensation for weather- or disease-related losses.
- New support for unborn livestock and aquaculture losses from bird strikes.
- Enhanced protections under the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP).
- Higher caps and eased access for orchard, nursery, and vineyard losses.
- Clearer eligibility rules for honeybee and tree damage compensation.
Crop Insurance Programs
Crop insurance received a notable funding boost—$6.3 billion over 10 years. This includes greater premium subsidies for area-based and supplemental coverage options, as well as expanded benefits for beginning farmers and ranchers, such as extended access to premium discounts.
The ‘Big Beautiful Bill’ also establishes a new pilot insurance program for poultry producers to help mitigate utility cost surges related to extreme weather, including spikes in gas, electricity, and water expenses. This poultry insurance program will be tested in top-producing states and must be developed with industry stakeholder input and receive final approval within two years.
If you have questions about your eligibility, please contact the FSA office at your local USDA Service Center or call (877) 508-8364 to speak directly with a USDA employee.
Conservation Programs
The ‘Big Beautiful Bill’ reauthorized and expanded billions in funding through 2031 for several key conservation programs, including:
- $18.5 billion for the Environmental Quality Incentives Program (EQIP)
- $8.1 billion for the Conservation Stewardship Program (CSP)
- $4.1 billion for the Agricultural Conservation Easement Program (ACEP)
- $2.7 billion for the Regional Conservation Partnership Program (RCPP)
Other reauthorized conservation program initiatives include:
- Grassroots Source Water Protection Program
- Voluntary Public Access and Habitat Incentive Program
- Feral Swine Eradication and Control Pilot Program
- Watershed and Flood Prevention Operations Program
To support the expansion of the above programs, the ‘Big Beautiful Bill’ rescinded unobligated forestry and conservation funds from the Inflation Reduction Act for competitive grants to non-federal forest landowners and pulls back nearly $101 million from Urban and Community Forestry Assistance grants.
Agricultural Trade Support
With agricultural exports facing a prolonged trade imbalance, the ‘Big Beautiful Bill’ doubled investment in USDA trade programs through the creation of a new Supplemental Trade Promotion Program and expansion of the Market Access Program (MAP) and Foreign Market Development (FMD) Program budgets.
These measures aim to reduce the record agricultural trade deficit by opening more doors for U.S. commodities in international markets while reinforcing long-term demand.
Future of Farm Bill Funding
While this ‘Big Beautiful Bill’ delivers farm funding for many programs that fall within the existing farm bill, lawmakers are already working toward a slimmed-down “Farm Bill 2.0” to address programs excluded from the budget package.
House Ag Committee Chairman Glenn “GT” Thompson (R-Pa.) is pushing for a standalone farm bill by this fall, estimating a need for $8 billion in additional spending over ten years.
Areas of focus left out of the ‘Big Beautiful Bill that could be addressed in a 2025 farm bill include:
- Specialty crop policy reform
- Regulatory clarity for industrial hemp and Proposition 12
- Reauthorization of the Conservation Reserve Program
- Permanent disaster programs
- Rural broadband assistance
- H-2A farmworker visa program reform
For the American Farmer Through Thick and Thin
At AgAmerica, we help agricultural producers move forward with clarity, even amid policy uncertainty. With flexible land loan products and singular expertise in ag finance, we stand ready to support your operation in navigating federal farm funding priorities. Our team goes the extra mile to equip you with the tools, insights, and support your operation needs to grow with confidence and long-term stability.
Let’s build a financial strategy that works for your farm—no matter what’s happening in Washington. Connect with an AgAmerica lending expert today.
