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Congress Passes Reconciliation Bill with
Big Wins for Agriculture
Increases Reference Prices and Expands Farm Program Support
On July 3rd the House voted to pass the Senate version of the much anticipated Reconciliation package. The bill now goes to President Trump for signature. The bill provides an estimated increase of $66 billion in spending on Farm Bill programs above the current baseline. Highlights of the final bill (same as the version passed by the Senate on Tuesday, July 1st) include:
Reference Prices - The Reference Price under the Price Loss Coverage (PLC) program are increased with barley moving from the current $4.95 to $5.45 per bushel. The bill also bolsters the Effective Reference Price escalator provisions and incorporates an annual automatic .5% increase in Reference Prices beginning in 2031.
ARC - Trigger increased from 86% to 90%.
The bill would make the new ARC and PLC provisions available for 2025 crop year. Regardless of what a grower signed up for earlier this year, they would get the higher of ARC or PLC assistance for 2025. This would be for 2025 only and annual program elections would resume in 2026 and after.
Base Acres - Farmers will have the opportunity to voluntarily add base acres using the average of their plantings from 2019 - 2023.
Payment Limits - Increased from $125,000 to $155,000. Adjusted annually for inflation.
Crop Insurance - The premium assistance levels for individual coverage is increased by 3-5% and the premium assistance for the Supplemental Coverage Option (SCO) is increased from 65% to 80%.
MAP/FMD - Funding is provided equivalent to a doubling of the current Market Access Program and Foreign Market Development (MAP/FMD).
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