Guest author: Carl Zulauf, Emeritus Professor, Department of Agricultural, Environmental, and Development Economics, Ohio State University
Note: The 2025 Reconcilation Bill (known “One Big Beautiful Bill Act”) was signed into law by President Donald Trump on July 4, 2025. We thank our guest author and Farm Bill expert, Dr. Carl Zulauf, for his analysis of the key farm bill provisions of this legislation.
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)
Specifies household size adjustment factors relative to 4-person size used for Thrifty Food Plan.
Requires that updates of the Thrifty Food Plan be cost neutral.
Cost of the Thrifty Food Plan is indexed for CPI inflation.
Work requirements are increased, including that able-bodied individuals work through age 64. Curtails Secretary of Agriculture’s discretion to issue work requirement waivers.
Limits placed on some expenses and government payments used in determining SNAP eligibility.
If a state’s SNAP error rate exceeds 6%, requires a state matching share of 5% to 15% depending on the error rate. (Assessment: reduces Federal spending without reducing 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 by non-US citizens by specifying groups that have access.
COMMODITY SUPPORT PROGRAMS
| Support Prices | Current | 2025 | Current | 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% |
Price Loss Coverage (PLC) Reference Prices
Starting with 2031 crop year, prior year reference price 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, limited to 115% of statutory reference price.
Updates the years used to determine the temperate japonica rice 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 policy and enroll in ARC (not currently allowed).
Commodity Program Election
For crop year 2025, landowners receive higher of ARC or PLC payment. (Assessment: likely done since Congress altered 2025 program parameters, including reference prices; but could signal a potential change in next farm bill.)
For 2026-2031 crops, annual election of ARC or PLC.
Cotton
Textile mill assistance increases from 3 to 5 ¢ / pound of upland cotton on August 1, 2025
Increases payment rate for cotton storage cost for cotton under loan.
Repayment rate for upland cotton marketing assistance loan is lower of (a) loan rate plus interest or (b) lowest world market price over 30-day period starting the day loan repaid. Ensures a refund is made if loan repayment rate exceeded the lowest world price.
Upland cotton world market price formula will use 3 instead of 5 lowest prices.
For Extra Long Staple Cotton, extends current Title 1 programs through 2031. 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.
Rice Marketing Loans
For 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.
Adds partnerships, S-Corporations, and Limited Liability Corporations to joint ventures and general partnerships as a “qualified pass-thru entity” eligible to receive payments.
Expands access to standing disaster, noninsured disaster assistance, and conservation programs for producers with 75% or more of average gross income from farming, ranching, or forestry.
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
b. 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 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 the 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 current covered commodities planted on the FSA farm over 2019-2023 using the following ratio:
[(2019-2023, all years included, average of acres planted and prevented planted to a given covered commodity) to (2019-2023, all years included, average of total acres planted or prevented planted to all covered commodities on the FSA 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
8. A FSA farm’s current PLC yield for a crop is used. If the farm has no PLC yield, average PLC yield for the county in which the farm is situated is used. If no county PLC yield exists, current FSA methods in this situation are used.
Assessment: This is a major expansion of commodity program payments to current noncovered crops. Hay, the third largest US field crop, benefits the most. However, no new program commodities are created, so new base acres are added to base acres of existing program commodities even if their current base acres exceed their current planted acres.
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.
Secretary of Agriculture can increase US supply of sugar before April 1 only if an emergency shortage is caused by war, flood, hurricane, other natural disaster, or similar event.
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 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 and Tree 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 weather or disease.
Secretary of Agriculture determines market value and may consider regional price premiums.
Adds a supplemental payment for loss of unborn livestock effective January 1, 2024.
For livestock forage disaster program, provides 1 monthly payment for a county having a U.S. Drought Monitor rating of D2 (severe drought) intensity in any area of the county for at least 4 consecutive weeks during the 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.
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.
For SCO (Supplemental Coverage Option), increases its coverage level from 86% to 90% and its premium subsidy rate from 65% to 80%.
| Percent Premium Subsidy for Basic and Optional Unit by Percent Coverage Level | |||||||||
| 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 |
Restrictions on Insurance Decisions
Permits SCO insurance to be bought for base acres enrolled in ARC (not currently allowed).
SCO and STAX (Stacked Income Protection Plan) cannot be bought for same cotton acre.
Administrative and Operating (A&O) Expenses
Starting with the 2026 reinsurance year, states that have loss ratios greater than 120% 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 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 $0.01 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
Authorizes baseline funding for FY2026-FY2031 including these endpoint amounts (billion $)
Program 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
Authorizes funding for Grassroots Source Water Protection Program and Feral Swine Eradication and Control Pilot Program.
Rescinds unobligated funds for conservation programs appropriated by IRA (Inflation Reduction Act of 2022).
FORESTRY
Rescinds unobligated funds appropriated under IRA for many forest and tree programs.
TRADE
Authorizes funds for trade promotion programs totaling $0.285 billion / year starting FY2027.
RESEARCH
Authorizes funds for
Urban, Indoor, and Other Emerging Agricultural Production Research, Education, and Extension Initiative
Foundation for Food and Agriculture Research
Scholarships for Students at 1890 Institutions
Assistive Technology Program for Farmers with Disabilities
Specialty Crop Research Initiative
Research Facilities Act
ENERGY
Extends through FY2031 mandatory funds of $0.007 billion / year for the Bioenergy Program for Advanced Biofuels.
HORTICULTURE
Increases mandatory funds from $0.075 to $0.090 billion / year for Plant Pest and Disease Management and Disaster Prevention Program.
Increases mandatory funds from $0.085 to $0.100 billion / year for Specialty Crop Block Grant Program.
Authorizes $0.010 billion / year through FY2031 for Organic Production and Market Data Initiative.
Authorizes $0.005 billion to modernize and improve international trade technology systems and data collection on imports of organic agricultural products.
Authorizes $0.008 billion / year through FY2031 for National Organic Certification Cost-Share Program.
Authorizes $0.005 billion to conduct Multiple Crop and Pesticide Use Survey.
OTHER
Extends mandatory funding of $0.004 billion/ year through FY2031 for Farm to Food Bank Projects under The Emergency Food Assistance Program.
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.
Authorizes per year through calendar year 2031 $0.016 billion for Pima Agriculture Cotton Trust Fund, $0.030 billion for Agriculture Wool Apparel Manufacturers Trust Fund, $0.00225 billion for Wool Research, Development, and Promotion Trust Fund, and $0.025 billion for Emergency Citrus Disease Research and Development Trust Fund.