FSA Payment Processing
From the Western Ag Network, I’m Bob Larson. Farm Service Agency offices have started processing and sending producers record 2025 ARC and PLC payments under last year’s Working Families Tax Cuts Act.
FSA has started processing almost 14 billion dollars in payments that local offices must certify and sign by the end of the month.
FSA Deputy Administrator Jared Hagert says the 2025 tax law not only updated reference prices but had an added benefit …
HAGERT … “You get the higher of ARC or PLC, regardless of the selection that was made.”
Payment limits were also increased …
HAGERT … “From 125-thousand to 155-thousand, starting with the 2025 crop year, and there will be annual adjustments based on inflation.”
And given delays all year in new farm aid, a farm bill, and permanent year-round E15, Hagert says the ARC/PLC update is welcome news …
HAGERT … “Those enhancements really translate into meaningful support for producers who are facing lower commodity prices and revenues. And that helps producers manage the market volatility and maintain the financial strength of their operations.”
Under the tax law, farmers can also benefit from deferred capital gains taxes, a 20 percent business income tax deduction, and a doubled estate tax exemption.
