ARC/PLC Payments 2025: Extra $3.2B in Farm Support from OB3 Provision
Thanks to the OB3 provision, U.S. farmers will get an extra $3.2 billion in 2025 ARC/PLC payments-on top of a projected $13.5 billion total. Here's who benefits most.
A recent USDA analysis reveals how program enrollment and projected payments for ARC-CO and PLC stack up across the seven largest row crops.
Enrolled Base Acres and Projected Average ARC/PLC Payment Rates ($/base acre) for 2025
| Commodity | ARC-CO Enrolled Base Acres (000s) | ARC-CO % | PLC Enrolled Base Acres (000s) | PLC % | ARC-CO Payment Rate ($/base acre) | PLC Payment Rate ($/base acre) |
|---|---|---|---|---|---|---|
| Soybean | 49,231 | 94% | 2,969 | 6% | $16 | $21 |
| Wheat | 34,644 | 57% | 26,340 | 43% | $20 | $46 |
| Grain Sorghum | 4,113 | 49% | 4,246 | 51% | $20 | $48 |
| Corn | 76,592 | 83% | 15,263 | 17% | $45 | $65 |
| Seed Cotton | 1,175 | 11% | 9,979 | 89% | $34 | $129 |
| Peanuts | 24 | 1% | 2,306 | 99% | $38 | $197 |
| Long Grain Rice | 10 | 0% | 3,724 | 100% | $102 | $286 |
Commodities like corn, soybeans, wheat, and grain sorghum-which had relatively higher ARC-CO enrollment-stand to benefit most from the OB3 rule. For these crops, the PLC payment projections significantly exceeded ARC-CO rates, resulting in billions in "additional" payments.
Projected Total ARC/PLC Payments for 2025, Major Row Crops
| Commodity | ARC-CO ($ millions) | PLC ($ millions) | Additional ($ millions) | Total Payments ($ millions) | Additional % |
| Soybean | $770 | $63.3 | $338 | $1,172 | 29% |
| Wheat | $697 | $1,220 | $1,027 | $2,944 | 35% |
| Grain Sorghum | $81.0 | $204 | $129 | $414 | 31% |
| Corn | $3,475 | $985 | $1,599 | $6,059 | 26% |
| Seed Cotton | $39.5 | $1,287 | $99.2 | $1,425 | 7% |
| Peanuts | $0.90 | $455 | $3.34 | $459 | 0.7% |
| Long Grain Rice | $0.97 | $1,065 | $1.41 | $1,067 | 0.1% |
| Total | $5,064 | $5,278 | $3,198 | $13,540 | 24% |
The $3.2 billion in extra payments represent a major shift in safety net delivery. While enrollment typically locks producers into one payment stream, the OB3 Act's flexibility could reshape farm program expectations moving forward.
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This boost in 2025 support arrives at a critical time. Net farm income has been in decline since 2023, and average returns remain weak. However, these ARC/PLC payments-expected in October 2026-may arrive too late to address immediate cash flow needs.
County-level analysis shows additional payments average nearly $14 per base acre, with higher impacts across the Midwest (Nebraska, Kansas, Dakotas, Minnesota). While long grain rice and peanuts see minimal additional support due to heavy PLC enrollment, crops with diverse enrollment like corn and soybeans reap significant gains.
Starting in 2026, farmers will resume making annual enrollment decisions between ARC-CO and PLC. Whether OB3's one-time flexibility becomes permanent remains to be seen.
