USDA Expands Payment Limitation and Payment Eligibility Provisions for Farmers
Published Friday, June 12, 2026
Last week, the U.S. Department of Agriculture announced changes to payment limitation and payment eligibility provisions affecting several federal farm programs. According to Farm Service Agency Administrator Bill Beam, the updates are intended to provide producers with greater flexibility in structuring their farm businesses while maintaining access to the federal farm safety net.
For the 2025 crop year, payment limits for Agriculture Risk Coverage and Price Loss Coverage programs will increase from $125,000 to $155,000. USDA also expanded the definition of qualifying farming income used to determine eligibility for certain payment and adjusted gross income requirements. Under the revised policy, producers may count additional sources of agricultural income, including agritourism activities, direct-to-consumer sales and certain equipment sales, toward the requirement that at least 75% of adjusted gross income be derived from farming, ranching or silviculture. Meeting that threshold allows producers to qualify for exemptions from the $900,000 adjusted gross income limitation that applies to certain conservation and disaster assistance programs. USDA said the changes are intended to better reflect the diversified business models many agricultural operations use today and to ensure producers maintain access to important risk management and safety net programs.
Farmers are encouraged to review the updated guidance and determine how the changes may affect their operations.
Staff contact: Erin Huston, ehuston@cfbf.com.
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