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USDA Resumes ARC, PLC Payments as FSA Offices Reopen

Despite the shutdown, USDA will release $2.5B in ARC and PLC payments and reopen FSA offices to support farmers during harvest.

AgroLatam USA

The Trump administration has cleared the path for the release of $1.9 billion in Agriculture Risk Coverage (ARC) payments and $589 million in Price Loss Coverage (PLC) payments, both crucial safety net programs for commodity producers enrolled in 2024.

These payments had been stalled due to the partial government shutdown, which forced the closure of most FSA field offices and suspended normal agency operations.

"President Trump will not let the radical left Democrat shutdown impact critical USDA services while harvest is underway," Rollins posted on X (formerly Twitter), emphasizing the administration's commitment to supporting farmers despite political gridlock. She confirmed that FSA will resume core operations Thursday, including farm loan processing and other essential services.

ARC and PLC are cornerstone risk management tools under the farm bill, triggered by declines in county-level revenues (ARC) or when commodity market prices fall below statutory reference prices (PLC). Payments are distributed annually in October for the previous crop year.

According to the University of Missouri's Food and Agricultural Policy Research Institute, the total disbursement this fall was projected to exceed $2.48 billion, offering much-needed relief to farmers facing elevated input costs, fluctuating commodity prices, and ongoing market uncertainty.

Rollins praised USDA personnel for their continued service despite the shutdown:
"Special thanks to our great USDA employees who continue to work without pay to serve our farmers and ranchers," she wrote.

This action follows mounting criticism over the administration's trade stance - particularly the ongoing trade war with China and President Trump's recent suggestion to import beef from Argentina to lower U.S. prices. That proposal was met with sharp backlash from domestic ranchers already wary of foreign competition and policy inconsistency.

The timing of the payment release is critical. With harvest in full swing across the Corn Belt and Plains, access to ARC/PLC funds and FSA services can influence short-term financial liquidity, equipment financing decisions, and planting strategies for 2026.

As farm country grapples with macroeconomic and geopolitical pressures, restoring core USDA operations offers a degree of stability and reassurance - even as broader budget and trade debates loom over the ag sector.

The resumed operations and payments will be closely watched by farmers, lenders, co-ops, and agribusiness stakeholders for their immediate financial impact and broader implications for agriculture policy continuity heading into 2026.

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