Enhancements Made to the Farm Safety Net

The House reconciliation package makes adjustments in the farm safety net. Reference prices would increase for all covered commodities starting with the 2025 crop year. The ARC-CO and ARC-IC guarantee increases from 86 percent to 90 percent of the benchmark level and increases the maximum payment rate from ten percent to 12.5 percent. It provides an opportunity to establish additional base acres and increases the individual payment limits from $125,000 to $155,000. The loan rate for sugarbeets is raised beginning with the 2025 crop year. This bill updates Dairy Margin Coverage and extends DMC through 2031. Access to crop insurance through enhanced premium support is part of the package. Beginning Farmer and Rancher benefits are adjusted from five years to ten years. The bill, which still needs approval in the Senate, doubles the funding for market development programs and bumps up the funding for the Specialty Crop Research Initative from $80 million to $175 million.