Fordyce explains payment limits, eligibility
Agriculture Undersecretary for Farm Production and Conservation Richard Fordyce told The Hagstrom Report this week that he is finalizing the payment limitations and eligibility rules for programs funded through the One Big Beautiful Bill Act.
Fordyce said that, starting with the 2026 crop year, the Farm Service Agency will treat limited liability corporations (LLCS) and subchapter S corporations (S corps) so that each member of an entity that passes income through to personal tax returns and is actively engaged in farming will qualify for expanded payment limitations.
In the past, Fordyce said, LLCS and S corps were subject to a single payment limitation, regardless of the number of members.
“That is good news,” Fordyce said.
FSA had set June 1 as the date for determining ownership interest, but that deadline has been extended to Sept. 15. Farmers need to inform their local FSA offices of their ownership status. Farm operators may have already registered the business ownership but might not have listed all the members, which they need to record.
Fordyce said farm operators with crop insurance policies must inform their agents to make sure the restructuring does not affect their crop insurance policies, and those with Non-insured Disaster Assistance policies must inform their FSA offices.
Fordyce also said that the additional 30 million base acres allowed under the OBBBA have been allocated, and landowners need to decide whether to accept them or opt out. The process started last week and will continue for 90 days, he said.
Signup for the Agricultural Risk Coverage and Price Loss Coverage for the 2026 crop year will take place in August or September, he said. Those programs will operate under the higher reference prices established by the OBBBA.
Payment limits increased from $125,000 to $155,000 per qualified entity under the OBBBA, he noted.
For the 2025 crop year, producers will get the higher of the ARC or PLC payment, he said.
Fordyce also explained that USDA had been able to increase the amount of money for the Assistance for Specialty Crops Farmers program from $1 billion to $1.6 billion because there was money left over from the Farmer Bridge Assistance program for row crop producers and from some smaller programs funded through the Commodity Credit Corporation. There is still money left in the Farmer Bridge account to meet any final demand for that program.
Fordyce noted that of the $1 billion initially set aside for specialty crop producers, $150 million went to sugar producers.
