New Law Boosts Farm Support

By Scout Nelson

Nebraska farm owners may soon have a rare opportunity to expand access to federal farm safety net programs as uncertainty continues to pressure commodity markets. A new federal law allows additional cropland acres to qualify for support under existing farm aid programs.

The One Big Beautiful Bill Act permits farms to register more “base acres” with the U.S. Department of Agriculture. Base acres are tied to historically planted crops and are used to calculate payments under the Price Loss Coverage and Agricultural Risk Coverage programs. These programs help protect farm income when market prices fall or when revenue expectations are not met.

An extension policy specialist explained that this change could significantly increase financial protection across Nebraska agriculture.

“[Nebraska] would be looking to add a substantial number of acres that would be eligible for farm program support, and that would expand the support and the financial security for Nebraska farmers,” Lubben said.

Nebraska has about 21 million acres of cropland, but only around 15.89 million base acres. This means roughly 75 percent of cropland currently qualifies for federal program payments. The gap exists because some acres do not grow covered commodities or because crop rotation and fallow practices reduced eligibility in past base calculations.

An agricultural economist said expanding base acres would better reflect current planting patterns.

“We would love to see that base acre increase, because the percentage of base acres that we have is relatively low as you look across the state,” Groskopf said.

Base acres are assigned using planting data from 2019 to 2023. While producers cannot update which crop is tied to a base acre, adding acres still increases the land protected by federal programs.

“Producers are paid and supported based on this acreage that is reflective of what they grow, but not necessarily exactly what they grow today,” Lubben said.

Nationwide, the law caps new base acres at 30 million, meaning farms may only add part of their eligible land. The policy follows World Trade Organization rules that require payments to be separated from actual production.

“If we are going to be members of the World Trade Organization, then we have to play by their rules,” Groskopf said.

While expanded base acres and higher payment limits provide support, experts agree they are not a full replacement for income.

“Every farmer, I think, would tell you they would much prefer to get income from the marketplace instead of from the government,” Lubben said.

Base acre signups are expected during upcoming annual ARC and PLC enrollment periods.

Photo Credit: istock-dusanpetkovic