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Analysis by the University of Missouri\u2019s Food and Agricultural Policy Research Institute shows producers will benefit from farm policy changes in the One Big Beautiful Bill Act.<\/p>\n
Pat Westhoff tells Brownfield the One Big Beautiful Bill Act does provide more payments to producers than the extended 2018 farm bill would have provided. \u201cPretty much every commodity sees increases in ARC and PLC payments so that\u2019s obviously a benefit to a wide range of producers. On the other hand, the increases, while they\u2019re very important, don\u2019t change the fundamental story that income levels are expected to be much lower in the future than they were at the peak in 2021 and 2022.<\/p>\n
For crop insurance, Westhoff says under the OBBB, producers will receive higher-of calculated PLC or ARC payment for each crop, regardless of which program they elected before the OBBB was approved.\u00a0\u201cIt\u2019s true for the 2025 crop so it\u2019s for this one-year only. You don\u2019t have to go back and redo your election to take in account of the new provisions. Starting in 2026, we\u2019ll be back to the old routine of every year where you\u2019ll have to sign up for one of the programs or the other.\u201d<\/p>\n
Westhoff says the OBBB Act did allow for more base acres but, \u201cThe provision is a little bit murky, so we\u2019re still waiting to see just exactly how USDA will choose to interpret some of it, but at least given the interpretation that we assumed, it gets significant increases in base acreage for all of the major program crops.\u201d<\/p>\n