Farmers Will See Increased ARC/PLC Payments Starting This Year

FSA is processing and sending producers record 2025 ARC and PLC payments under last year’s Working Families Tax Cuts Act. The Agency is processing almost $14 billion in ARC and PLC payments that local offices must certify and sign by the end of the month. Some payments were already expected to show up in producers’ accounts.

FSA Deputy Administrator Jared Hagert says the 2025 tax law not only updated reference prices but farmers get the higher of ARC or PLC, regardless of the selection that was made. He noted, payment limits increased as well.

“From $125,000 to $155,000, starting with the 2025 crop year, and there will be annual adjustments based on inflation,” Hagert said.

And given delays all year in new farm aid, a Farm Bill, and more, Hagert said the ARC/PLC update is welcome news.

“Those enhancements really translate into meaningful support for producers who are facing lower commodity prices and revenues," said Hagert. "And that helps producers manage the market volatility and maintain the financial strength of their operations.”

He added farmers under the tax law can also benefit from deferred capital gains taxes, permanent bonus depreciation, and a 20% business income tax deduction, plus a doubled estate tax exemption.

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