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Deadlines/Dates
September 15: Deadline to Update Payment Eligibility for Entities
September 30: Deadline to Complete Fiscal Year 2026 (FY26) Mid-Contract Management on the Conservation Reserve Program (CRP); Deadline to remove livestock from Non-Emergency Grazing of Conservation Reserve Program; Deadline to apply for the Supplemental Disaster Relief Program (SDRP) Stage 1, Stage 2, and Stage 1 Quality Loss; Office Fiscal Year Rollover
October 1: Fiscal Year 2027 (FY27) Mid-Contract Management on Conservation Reserve Program (CRP) Opens
December 31: Deadline to Apply for Organic Certification Cost Share Program (OCCSP)
USDA Expands Payment Limitation and Payment Eligibility Provisions for Farmers
The U.S. Department of Agriculture’s Farm Service Agency (FSA) is expanding payment limitation and payment eligibility provisions that affect program payments including allowing for the equitable treatment of business entities. Additionally, producers will benefit from an increased payment limitation for certain programs, and a broader definition of farming income that will result in more exceptions to income limitations.
Payment Eligibility
Starting with the 2026 crop year, for payment eligibility purposes, FSA will treat applicable limited liability companies (LLCs) and S-Corporations (S-Corps), and other similar entities, as “pass through entities.” Each member of the qualified pass-through entity who meets actively engaged in farming criteria will help qualify the entity for expanded payments.
Previously, farm operations that were structured as an LLC or an S-Corp were limited to a single payment limitation, which varies by program. Now, partnerships, S-Corps, qualifying LLCs, and joint ventures or general partnerships will be treated the same.
For program year 2026 only, farm operations that are structured as LLCs or S-Corps or one of the new qualified pass-through entities must file updated farm operating plans with FSA for program year 2026 by Sept. 15, 2026. After program year 2026, FSA will continue to use June 1 as the date for determining ownership interest in an entity. Producers who have crop insurance or Noninsured Crop Disaster Assistance Program coverage should contact their crop insurance agent or local FSA office before restructuring their farm operation to ensure appropriate timing for restructuring without impacting current insurance coverage.
Members of qualified pass-through entities must provide contributions and be engaged in farming for the entity to be considered actively engaged in farming.
An additional change allows members of all entity types to receive compensation for labor and management contributions and use the same contribution to qualify as “actively engaged in farming.” This update provides consistent treatment of member contributions across all entity types.
Payment Limitation and Attribution
Payment limitation changes include an increased payment limit for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program. Starting with crop year 2025, the ARC and PLC payment limit will increase from $125,000 to $155,000. This payment limit will be adjusted going forward annually based on inflation.
Payment limitations are the maximum amount that a person or legal entity can receive for any crop year, directly or indirectly, through certain USDA programs. The same maximum payment limitation that applied to joint ventures and general partnerships will apply to qualified pass-through entities.
The policy change to payment limitation calculations takes effect beginning with program year 2026 for all qualified pass-through entities.
Average Adjusted Gross Income
The Working Families Tax Cuts Act broadened the definition of farming income to be more reflective of modern agricultural business practices. As a result, diversified producers will not be penalized under USDA’s requirements for average adjusted gross income (AGI).
Producers are exempt from the $900,000 AGI cap for conservation and disaster programs if at least 75% of their average gross income is from farming, ranching, or silviculture, which now includes agri-tourism, direct-to-consumer sales, and certain equipment sales.
Additionally, qualified pass-through entities are not required to certify compliance with the average AGI limitation at the entity level. However, members individually must meet average AGI requirements, which is the same requirement for joint operations.
Producers should contact their local FSA county office for more information or to update their farm operating plan by the Sept. 15, 2026, deadline for the 2026 program year.
Conservation Planning Helps Improve Farm Productivity
Whether you rent or own your land, a conservation plan is critical to maintain and improve farm productivity. Plans of any kind are important as they set goals and outline how to reach them. Conservation plans are roadmaps for improving your operation while conserving natural resources.
They provide proven strategies that landowners can use to solve identified natural resource concerns and take advantage of conservation opportunities.
USDA’s Natural Resources Conservation Service can help you develop a conservation plan. This technical assistance from NRCS is free, and it can help you reduce soil loss from erosion, solve issues with soil, air and water quality, reduce potential damage from excess water and drought, enhance the quality of wildlife habitat, address waste management concerns, and improve the long-term sustainability of the country’s natural resources.
How does conservation planning work? You’ll meet with a planner from NRCS for a science-based evaluation of your problems and opportunities on your land. The NRCS staff member, often a district conservationist or conservation planning technician, then analyzes the findings and recommends the best strategies to address your problems and achieve valuable opportunities.
If you’re interested in conservation planning, contact your Allamakee County USDA Service Center at 563-568-2148 ext.3 or visit nrcs.usda.gov.
Farm Safety
Flowing grain in a storage bin or gravity-flow wagon is like quicksand — it can kill quickly. It takes less than five seconds for a person caught in flowing grain to be trapped.
The mechanical operation of grain handling equipment also presents a real danger. Augers, power take offs, and other moving parts can grab people or clothing.
These hazards, along with pinch points and missing shields, are dangerous enough for adults; not to mention children. It is always advisable to keep children at a safe distance from operating farm equipment. Always use extra caution when backing or maneuvering farm machinery. Ensure everyone is visibly clear and accounted for before machinery is engaged.
FSA wants all farmers to have a productive crop year and that begins with putting safety first.
Report Banking Changes to FSA
Farm Service Agency (FSA) program payments are issued electronically into your bank account. In order to receive timely payments, you need to notify your FSA servicing office if you close your account or if your bank information is changed for any reason (such as your financial institution merging or being purchased). Payments can be delayed if FSA is not notified of changes to account and bank routing numbers.
If the bank account was closed due to the death of an individual or dissolution of an entity or partnership before the payment was issued, please notify your local FSA office as soon as possible to claim your payment.
Save Time: Make an Appointment with FSA
Producers are encouraged to call their local FSA office to schedule an appointment to ensure maximum use of their time and to make sure FSA staff is available to tend to their important business needs. Please call your local FSA office ahead to set an appointment and to discuss any records or documentation that might be needed during your appointment. To find your local FSA office, visit farmers.gov/working-with-us/service-center-locator.
