The One Big Beautiful Bill
The One Big Beautiful Bill has officially made it to the finish line, passed by Congress and signed into law by President Trump on July 4. While the bill covers a lot of ground, there are a few key points every ag producer should know.
ARC or PLC? Now You Get the Higher of the Two
A major change in this bill is that for the 2025 crop year, farmers will receive the higher of ARC or PLC payments rather than having to elect one program over the other. It’s a small change, but this could have a meaningful impact on your on the bottom line, especially in uncertain price environments. Just keep in mind, these payments won’t show up until October 2026.
Updated Reference Prices Mean Higher Payments
The bill also includes updated Effective Reference Prices (EFR), which will likely bump up your PLC payments. Based on USDA’s June price estimates, projected PLC payments could increase from around $2.6 billion under the old system to nearly $11 billion with the new reference prices and expanded base acres.
Family Transitions Made a Bit Easier
Another notable piece of this bill is that it does not include related-party restrictions. Meaning might be able to sell farmland to their kids with fewer tax headaches, supporting family transitions and helping keep the land in the family.
Payment Limits and Entity Rules
The payment limit for ARC and PLC will be $155,000 per producer, and entities like LLCs and S-Corps will be treated the same as general partnerships. This gives a bit more flexibility for many family operations.
What This Means for Your Operation
In short, here’s what matters for producers:
You’ll receive the higher of ARC or PLC payments for the 2025 crop year.
Updated reference prices are likely to increase the payments you receive.
Payment limits and entity rules will affect how payments flow through your operation.
Payments won’t arrive until October 2026, but planning now can help align your cash flow and marketing strategy.
Our Take
This bill might not fix every challenge in agriculture, but it does open a solid window for producers who want to set themselves up for more stability in the years ahead. These changes could influence your bottom line, marketing choices, and transition plans in ways worth thinking through now, not just when payments are right around the corner. As the details keep evolving, now’s a good time to review your plan, align your cash flow, and make sure your operation is well-equipped for what’s coming.
