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The New Base Acre Provisions in the 2025 Farm Bill

July 11, 2025

Carl Zulauf, Gary Schnitkey, and Nick Paulson

This article continues the discussion begun in the July 1, 2025 farmdoc daily of the new base acre provision in the 2025 Farm Bill. The provision is systematically laid out. The 30 million acre cap on new base acres will likely be exceeded, necessitating pro-rating of new base acres. States in the Plains and Midwest are likely to add the largest number of new base acres. States with few base acres are likely to have the highest percent increase.

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Changes to Commodity and Crop Insurance Programs in the OBBBA

July 15th, 2025 @ 12:00 PM CDT

We will provide farmers and landowners with information they need to know about the commodity title and crop insurance provisions in the One Big Beautiful Bill Act (OBBBA) signed into law on July 4th, 2025. OBBA increases the chances and size of PLC/ARC for 2025 and succeeding years. Those payments will not be received until October 2026. Some landowners may add base acres as a result of this bill. Also, farmers will need to re-evaluate the use of the Supplemental Coverage Option (SCO) as a result of OBBBA provisions.

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The Growing Role of H-2A Workers in U.S. Agriculture

July 9, 2025

Christian Valencia and Nick Paulson

The H-2A program allows eligible employers in the U.S. an avenue to request and hire foreign workers to fill temporary agricultural jobs. The program plays a critical role in addressing seasonal and temporary labor needs. In 2024, more than 380,000 workers were authorized under this program—a 300% increase from 2010, when only 94,000 workers participated. This growth reflects both rising demand for labor and an increase in employer applications.

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2025 Grain Farm Return Prospects at the Beginning of July with a New Commodity Title

July 8, 2025

Gary Schnitkey, Nick Paulson, and Carl Zulauf

From February to the first three days of July, Chicago Mercantile Exchange (CME) settlement prices fell $.39 per bushel for corn and $0.13 for soybeans. Significantly higher PLC/ARC payment results under the One Big Beautiful Bill (OBBB) commodity title. The new commodity title results in significantly higher projected PLC/ARC payments. Even with increased commodity title payments, 2025 farm re-turns are projected to be low, likely continuing the negative returns in 2023 and 2024.

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Impact of Leverage on Rates of Return

July 7, 2025

Michael Langemeier

High debt to asset ratio farms had a lower net farm income ratio during the 2007 to 2024 period than low debt to asset ratio farms. However, retained earnings as a percentage of average net worth was higher for the high debt to asset ratio farms. For a substantial proportion of farms, leverage increased both financial performance and financial risk during the 2007 to 2024 period. It is important to note that interest rates were unusually low from 2008 to 2022.

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Farm Bill in Reconciliation: ARC/PLC Payment Projections; Policy Design Lab Update

July 3, 2025

Henrique Monaco, Jonathan Coppess, Nick Paulson, and Gary Schnitkey

On Tuesday, July 1, 2025, the United States Senate passed the budget reconciliation bill and sent it back over to the House of Representatives; On Wednesday, July 3, 2025, the…

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Response to the Increase in 2025 Crop ECO Premium Subsidy

July 2, 2025

Carl Zulauf, Bruce Sherrick, and Gary Schnitkey

Although early in the reporting period for 2025 crop insurance decisions by farmers, use of ECO (Enhanced Coverage Option) insurance has tripled vs 2024. The key change from 2024 is an increase in ECO premium subsidy implemented by USDA, RMA. ECO subsidy rate is now 65% compared to the prior rates of 44% when ECO was combined with individual farm revenue coverage and 51% when combined with individual farm yield coverage.

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Reconciliation Bill Proposals to Add Base Acres

July 1, 2025

Gary Schnitkey, Carl Zulauf, Nick Paulson and Jonathan Coppess

The Reconciliation Bills moving through Congress include proposals that would increase the number of base acres eligible for farm program payments. For farms that planted acreage to eligible crops from…

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The New Base Acre Provisions in the 2025 Farm Bill

Changes to Commodity and Crop Insurance Programs in the OBBBA

Recent Articles - View All

The Growing Role of H-2A Workers in U.S. Agriculture

2025 Grain Farm Return Prospects at the Beginning of July with a New Commodity Title

Impact of Leverage on Rates of Return

Farm Bill in Reconciliation: ARC/PLC Payment Projections; Policy Design Lab Update

Response to the Increase in 2025 Crop ECO Premium Subsidy

Reconciliation Bill Proposals to Add Base Acres

Recent Series

Ag Market Insights

Fringe Acres and US Average Corn Yield

Quiet Signals: Why Boring Crop Reports Matter

Corn Exports: Rocket Ship to Where?

A Breath of Optimism for Corn in a Down Market

Post-Harvest Grain Marketing in a Low-Price Environment

Weekly Farm Economics

2025 Grain Farm Return Prospects at the Beginning of July with a New Commodity Title

Dramatic Difference in Expected Yields between Corn, Soybeans, and Cotton for Area-Based Insurance Products

2024 County Corn and Soybean Yields from the Risk Management Agency

The House Reconciliation Bill Proposal for SCO: Income Support for High-Risk Farmland

Spring Revision to 2025 Illinois Crop Budgets

Gardner Policy Series

The New Base Acre Provisions in the 2025 Farm Bill

Farm Bill in Reconciliation: ARC/PLC Payment Projections; Policy Design Lab Update

Response to the Increase in 2025 Crop ECO Premium Subsidy

Reconciliation Bill Proposals to Add Base Acres

Consumer Concerns about Food Prices: Tariffs are Crowding Out Inflation

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