by: Carl Zulauf, Emeritus Professor, Department of Agricultural, Environmental, and Development Economics, Ohio State University, September 5, 2025
This article was originally published on July 11, 2025 on the Farm Office blog. This is an updated version published on September 5, 2025
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)
For Thrifty Food Plan specifies household size adjustment factors relative to 4-person household.
Starting October 1, 2025, cost of Thrifty Food Plan is indexed annually for CPI inflation.
Makes it more difficult for reevaluations of the Thrifty Food Plan increase cost more than inflation.
Expands SNAP work requirements to adults age 55-64 and adults with children age 14-17.
Restricts availability of standard utility allowance and prohibits use of internet expenses.
If a state’s SNAP payment error rate exceeds 6%, requires state matching share of 5% to 15% depending on error rate. (ASSESSMENT: reduces Federal spending more than benefits.)
Reduces Federal share of administering SNAP from 50% to 25% starting FY (Fiscal Year) 2027.
Eliminates National Education and Obesity Prevention Grant Program ($550 million / year).
Reduces access to SNAP for non-US citizens by specifying groups that have access.
Funds Farm to Food Bank Projects under Emergency Food Assistance Program through FY2031.
COMMODITY SUPPORT PROGRAM PRICES THROUGH 2031 CROP YEARS
| |
|
2024 |
2025 |
|
2024 |
2026 |
|
|
|
Statutory |
Statutory |
|
Loan |
Loan |
|
|
|
Reference |
Reference |
Percent |
Rate |
Rate |
Percent |
| Commodity |
Unit |
Price |
Price |
Increase |
Price |
Price |
Increase |
| |
|
|
|
|
|
|
|
| Wheat |
Bushel |
$5.50 |
$6.35 |
15% |
$3.38 |
$3.72 |
10% |
| Barley |
Bushel |
$4.95 |
$5.45 |
10% |
$2.50 |
$2.75 |
10% |
| Oats |
Bushel |
$2.40 |
$2.65 |
10% |
$2.00 |
$2.20 |
10% |
| Peanuts |
Pound |
$0.268 |
$0.315 |
18% |
$0.178 |
$0.195 |
10% |
| Corn |
Bushel |
$3.70 |
$4.10 |
11% |
$2.20 |
$2.42 |
10% |
| Grain Sorghum |
Bushel |
$3.95 |
$4.40 |
11% |
$2.20 |
$2.42 |
10% |
| Soybeans |
Bushel |
$8.40 |
$10.00 |
19% |
$6.20 |
$6.82 |
10% |
| |
|
|
|
|
|
|
|
| Dry Peas |
Pound |
$0.1100 |
$0.1310 |
19% |
$0.0615 |
$0.0687 |
12% |
| Lentils |
Pound |
$0.1997 |
$0.2375 |
19% |
$0.1300 |
$0.1430 |
10% |
| Canola |
Pound |
$0.2015 |
$0.2375 |
18% |
$0.1009 |
$0.1110 |
10% |
| Large Chickpeas |
Pound |
$0.2154 |
$0.2565 |
19% |
$0.1400 |
$0.1540 |
10% |
| Small Chickpeas |
Pound |
$0.1904 |
$0.2265 |
19% |
$0.1000 |
$0.1100 |
10% |
| Sunflower Seed |
Pound |
$0.2015 |
$0.2375 |
18% |
$0.1009 |
$0.1110 |
10% |
| Flaxseed |
Bushel |
$11.28 |
$13.30 |
18% |
$5.6504 |
$6.22 |
10% |
| |
|
|
|
|
|
|
|
| Mustard Seed |
Pound |
$0.2015 |
$0.2375 |
18% |
$0.1009 |
$0.1110 |
10% |
| Rapeseed |
Pound |
$0.2015 |
$0.2375 |
18% |
$0.1009 |
$0.1110 |
10% |
| Safflower |
Pound |
$0.2015 |
$0.2375 |
18% |
$0.1009 |
$0.1110 |
10% |
| Crambe |
Pound |
$0.2015 |
$0.2375 |
18% |
$0.1009 |
$0.1110 |
10% |
| Sesame Seed |
Pound |
$0.2015 |
$0.2375 |
18% |
$0.1009 |
$0.1110 |
10% |
| |
|
|
|
|
|
|
|
| Rice (long grain) |
Pound |
$0.1400 |
$0.1690 |
21% |
$0.0700 |
$0.0770 |
10% |
| Rice (med/short grain) |
Pound |
$0.1400 |
$0.1690 |
21% |
$0.0700 |
$0.0770 |
10% |
| Rice (temperate japonica) |
Pound |
$0.1730 |
not given |
|
$0.0700 |
not given |
|
| Seed Cotton |
Pound |
$0.3670 |
$0.4200 |
14% |
$0.2500 |
|
|
| Upland Cotton |
Pound |
|
|
|
$0.45-$0.52 |
$0.55 |
|
| Extra Long Staple Cotton |
Pound |
|
|
|
$0.95 |
$1.00 |
5% |
| |
|
|
|
|
|
|
|
| Graded Wool |
Pound |
|
|
|
$1.15 |
$1.60 |
39% |
| Ungraded Wool |
Pound |
|
|
|
$0.40 |
$0.55 |
38% |
| Mohair |
Pound |
|
|
|
$4.20 |
$5.00 |
19% |
| Honey |
Pound |
|
|
|
$0.69 |
$1.50 |
117% |
COMMODITY SUPPORT PROGRAM
Price Loss Coverage (PLC) Reference Prices
Starting with 2031 crop year, prior year’s statutory reference price is increased by multiplying it by 1.005.
Increases effective reference price escalator formula from 85% to 88% of 5-year Olympic average market year price. Effective reference price cannot exceed 113% (was 115%) of statutory reference price.
Agriculture Risk Coverage (ARC)
Increases ARC guarantee to 90% from 86% of benchmark revenue starting with 2025 crops.
ARC payment band increased to 12% from 10% starting with 2025 crop year
Allows producers to buy SCO (Supplemental Coverage Option) crop insurance if enrolled in ARC (not currently allowed).
Commodity Program for 2025 Crop Year
For crop year 2025 only, program participants receive higher of ARC or PLC payment. (ASSESSMENT: likely done since Congress altered 2025 crop year program parameters; but may signal a potential program provision in the next farm bill.)
Cotton
Increases payment rate for storage cost of upland and extra-long cotton under loan.
Upland cotton marketing assistance loan is repaid through 2032 at lower of (a) loan rate plus interest or (b) lowest world market price over a 30-day period starting the day the loan is repaid. Lowest market price is an average of the 3 (replaces 5) lowest-priced growths.
For Extra Long Staple Cotton, loan repayment rate is lower of (a) loan rate plus interest or (b) world market price, adjusted for U.S. quality, location, and transportation costs. Further adjustments are possible if the Secretary of Agriculture determines any one of a list of conditions in the legislation is met.
Assistance for textile mills increases from 3 to 5 ¢ / pound of upland cotton on August 1, 2025
Long Grain and Medium Grain Rice
Marketing loans repaid at lower of (a) loan rate plus interest or (b) world market price.
Commodity Program Payment Limits
Increases payment limit for Title I programs from $125,000 to $155,000 per payment entity starting with the 2025 crop year.
Payment limit is indexed to CPI inflation starting with the 2025 crop year.
Adds (1) certain partnerships (subchapter K of chapter 1 of the Internal Revenue Code of 1986), (2) certain S-Corporations (section 1361 of IRS Code, and (3) certain Limited Liability Companies that do not affirmatively elect to be treated as a corporation to joint ventures and general partnerships as a “qualified pass-thru entities” eligible to receive government program payments. Qualified pass-through entities are eligible for ARC and PLC payment limits equal to the payment limit per person multiplied by the number of eligible persons or legal entities that own the qualified pass-through entity.
Allows producers and business entities with Average Gross Income (AGI) from agricultural activities exceed $900,000 to participate in certain disaster assistance and conservation programs if 75% or more of their AGI is derived from eligible agricultural activities.
New Base Acres
Up to 30 million new base acres can be added by eligible farms effective the 2026 crop year.
For a FSA (Farm Service Agency) farm to be eligible,
- A current covered program commodity must have been planted some year during 2019-2023.
For an eligible FSA farm,
- For a FSA farm, planted acres must exceed total base acres for all covered program commodities, excluding unassigned generic cotton base, in effect on September 30, 2024. Planted acres equal
- 2019-2023 average, all years included, of acres planted or prevented from being planted to program commodities on the FSA farm; plus
- lesser of
- 15% of total acres on the FSA farm or
- 2019-2023 average, all years included, of acres planted or prevented from being planted to eligible noncovered commodities.
Eligible noncovered commodity acres are acres planted or prevented from being planted on a farm to commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by Secretary of Agriculture.
- New base acres = [(planted plus prevent planted acres calculated as above) plus (unassigned generic cotton base acres) minus (total base acres as of 9/30/2024)].
- No new covered commodities are created. New base acres are added to base acres of a current covered commodity planted on the FSA farm over 2019-2023 using the following ratio:
[(2019-2023, all years included, average of acres planted or prevent planted to the given covered commodity) to (2019-2023, all years included, average of total acres planted or prevent planted to all covered commodities on the farm)].
- Other than under an established practice with FSA of double cropping covered commodities, an owner must elect what covered commodity planted or prevent planted on the same acre is used to calculate the 5-year average.
Limits
- A FSA farm’s total base acres cannot exceed its total acres.
- New base acres are capped at 30 million for the US. If the cap is effective, an across-the-board, pro-rated reduction is applied to all eligible new base acres.
PLC Payment Yield for New Base Acres
- A FSA farm’s current PLC yield for a crop is used. If the farm has no PLC yield for the crop, average PLC yield for the county in which the farm is situated or current FSA methods for this situation will be used.
ASSESSMENT: A major expansion of commodity program payments to current non-program crops even though no new program commodities are created. Base acres are added to base acres of existing program commodities but can be added for acres in current non-program crops. Hay, the third largest US field crop, benefits the most.
Sugar Program
Increases the 2025-2031 crop year loan rates for raw cane sugar and for refined beet sugar.
Increases storage rate paid for sugar forfeited to the government.
If marketing allotments are increased, prioritizes beet sugar processors with available sugar.
Requires upfront reallocation of a TRQ (Tariff Rate Quota) shortfall when quota year starts and subsequent reallocation of any remaining shortfall to quota holding countries by March 1.
Requires a study of whether additional conditions are needed for refined sugar imports.
Dairy Margin Coverage (DMC)
Updates production history to highest annual milk marketed during any one of the 2021, 2022, or 2023 calendar year.
Raises maximum coverage from 5 million to 6 million pounds of milk.
Extends 25% discount on DMC premiums if coverage is locked in from 2026 through 2031.
Livestock Loss Assistance
Payment rate is 100% of market value of loses from predation by federally protected species.
Payment rate is 75% of market value of losses from adverse weather or disease.
Secretary of Agriculture may consider regional price premiums when assessing market value
Adds a supplemental payment for loss of unborn livestock effective January 1, 2024.
For livestock forage disaster program, provides 1 monthly payment for county having US Drought Monitor rating of D2 (severe drought) intensity in any area of county for at least 4 consecutive weeks during county’s normal grazing period. Two monthly payments can be received if D2 occurs any 7 of 8 consecutive weeks during the normal grazing period.
Farm-Raised Fish, Honey Bee, and Tree Loss Assistance
Adds assistance for losses of farm-raised fish due to piscivorous birds.
Sets standard mortality rate at 15% when determining honeybee colony losses.
For Tree Assistance Program, losses are triggered if normal mortality rates are exceeded. Reimbursement rate increased from 50% to 65% of pruning, removal, and other costs.
CROP INSURANCE
Premium Subsidy
Sets highest coverage level at 85% for individual yield or revenue insurance, 90% for individual yield or revenue insurance aggregated across multiple commodities, and 95% for area yield or revenue insurance.
Increases SCO (Supplemental Coverage Option) coverage level from 86% to 90% and premium subsidy rate from 65% to 80%.
Increases premium subsidy for basic and optional units as follows:
| Coverage Level |
CAT |
50% |
55% |
60% |
65% |
70% |
75% |
80% |
85% |
| Current Subsidy |
100 |
67 |
64 |
64 |
59 |
59 |
55 |
48 |
38 |
| New Subsidy |
100 |
67 |
69 |
69 |
64 |
64 |
60 |
51 |
41 |
NOTE: Higher premium subsidies for basic and optional units could potentially require USDA to increase premium subsidy schedules for some enterprise and whole farm units. Reason is U.S.C. §15018(e)(5) requires USDA to pay premium subsidies for enterprise and whole farm units that provide the same dollar amount of premium subsidy per acre as provided for the equivalent basic or optional units, up to a maximum of 80% of the total premium rate.
Administrative and Operating (A&O) Expenses
Starting with the 2026 reinsurance year, states that have loss ratios greater than 120% for insurance contracts that exclude catastrophic and area insurance contracts are eligible for additional A&O reimbursements equal to 6% of net book premium.
Starting with the 2026 reinsurance year, specialty crop policies under the A&O cap will receive a minimum reimbursement of 17% of the premium.
Starting with the 2026 reinsurance year, A&O reimbursement cap is indexed to CPI inflation.
Beginning Farmers and Ranchers
Extends eligibility to 10 years from 5 years, and increases subsidy rate for them by 5 percentage points (pp) for 1st and 2nd years, by 3 pp for 3rd year, and by 1 pp for 4th year.
Other
Increases funds for monitoring program compliance and integrity from current $0.004 billion / FY to $0.006 billion / FY plus $0.010 billion for a related statute for FY2026 and after.
Requires index-based Poultry Insurance Pilot for contract poultry growers to insure weather risk that raises utility costs.
CONSERVATION
Rescinds unobligated funds for conservation programs appropriated by IRA (Inflation Reduction Act of 2022).
Increases Farm Bill baseline spending for … (only FY2026 and FY2031 amounts listed (billion $))
FY2026 FY2031
EQIP (Environmental Quality Incentives Program) $2.655 $3.255
CSP (Conservation Stewardship Program) $1.300 $1.375
ACEP (Agricultural Conservation Easement Program) $0.625 $0.700
RCPP (Regional Conservation Partnership Program) $0.425 $0.450
Watershed Protection and Flood Prevention $0.150 $0.125
Provides funds for (1) Grassroots Source Water Protection Program, (2) Voluntary Public Access and Habitat Incentive Program, and (3) Feral Swine Eradication and Control Pilot Program.
NOTE: Authority for CRP (Conservation Reserve Program) is set to expire at the end of FY2025 and was not extended in this legislation. It will need to be extended in some other legislation.
FORESTRY: Rescinds unobligated funds appropriated under IRA for many forest and tree programs.
TRADE: Authorizes $0.285 billion / year starting in FY2027 for a new Supplemental Agricultural Trade Promotion Program, which is available to all agricultural product exports.
RESEARCH: Authorizes funds for (1) Urban, Indoor, and Other Emerging Agricultural Production Research, Education, and Extension Initiative, (2) Foundation for Food and Agriculture Research, (3) Scholarships for Students at 1890 Institutions, (4) Assistive Technology Program for Farmers with Disabilities, (5) Specialty Crop Research Initiative, and (6) Research Facilities Act.
ENERGY: Extends mandatory funds through FY2031 for Bioenergy Program for Advanced Biofuels.
HORTICULTURE: Increases mandatory funds for (1) Plant Pest and Disease Management and Disaster Prevention Program ($0.075 to $0.090 billion / year), (2) Specialty Crop Block Grant Program ($0.085 to $0.100 billion / year), and (3) Specialty Crop Research Initiative (0.080 to 0.175 billion).
Authorizes funds for Emergency Citrus Disease Research and Development Trust Fund.
OTHER: Authorizes funds for (1) Organic Production and Market Data Initiative, (2) Organic Certification, and Trade Tracking and Data Collection, (3) National Organic Certification Cost Share Program, and (4) Multiple Crop and Pesticide Use Survey.
Authorizes $0.233 billion / year through FY2030 for Animal Disease Prevention and Management, split $0.010 billion for National Animal Health Laboratory Network, $0.070 billion for NADPRP (National Animal Disease Preparedness and Response Program), and $0.153 billion for National Animal Vaccine Bank. Provides $75 million for FY 2031 and beyond, of which at least $45 million is for NADPRP.
Authorizes $0.003 million for Sheep Production and Marketing Grant Program.
Extends authorization for Pima Agriculture Cotton Trust Fund, Agriculture Wool Apparel Manufacturers Trust Fund, Wool Research, Development, and Promotion Trust Fund.
SOURCES
US Congress (119th). Accessed August 2025. H.R. 1 – One Big Beautiful Bill. CONGRESS.GOV https://www.congress.gov/bill/119th-congress/house-bill/1.
US Congressional Research Service. Updated August 15, 2025. Supplemental Nutrition Assistance Program (SNAP) and Related Nutrition Programs in P.L. 119-21: An Overview. CRS Report R48552. https://crsreports.congress.gov
US Congressional Research Service. Updated July 16, 2025. Selected Horticultural Provisions in FY2025 Budget Reconciliation (P.L. 119-21, Title I). CRS Insight IN12559. https://crsreports.congress.gov
US Congressional Research Service. June 6, 2025. One Big Beautiful Bill Act (H.R. 1): Section 10102, Agricultural Conservation. CRS Insight IN12560. https://crsreports.congress.gov
US Congressional Research Service. June 23, 2025. One Big Beautiful Bill Act (H.R. 1): Title I, Farm Safety Net and Miscellaneous Provisions. CRS Report R48574. https://crsreports.congress.gov