In Congress’s budget reconciliation, signed on July 4 by President Trump, significant improvements were made to Title 1 of the Farm Bill, including:
- Loan Rate – $7.70
- Temperate Japonica Medium Grain Reference Price – $24.33
- $155,000 Payment Limitation, increased from $125,000
- These changes will be for the 2025 crop year through 2031
- Starting in 2031, the reference price will rise automatically by 0.5% but cannot exceed 113% of the original reference price
- Agriculture Risk Coverage (ARC) guarantees 90 percent of the benchmark revenue and the payment band of 12 percent for crop years 2025 through 2031.
Notes to remember:
Growers can annually select ARC or PLC for their operation. All payments continue to be subject to a 5.7% sequestration.
USA Rice
The US rice industry was only able to achieve these results through collaborative work among all states. Great credit is due to USA Rice for their years-long work on improving the rice safety net and support of both Chairman GT Thompson and Senate Ag Committee Chair John Boozman.
Please find their comprehensive analysis here.
Next
The conservation title and other titles of the farm bill will be taken up by the House and Senate Ag committees in a skinny farm bill this fall. Bi-partisan work is expected.
