USDA Boosts Iowa Agricultural Economy Through $1.39 Billion in Safety Net and Conservation Program Payments

(Des Moines, Iowa, October 16, 2026) - The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) is delivering approximately $1.39 billion in farm safety net and conservation program payments to Iowa farmers, ranchers and landowners. USDA recently announced nationwide historic safety net assistance totaling $13.8 billion in gross payments through the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2025 crop year and an additional $1.8 billion in Conservation Reserve Program (CRP) annual payments for 2026.

"These dollars help producers and landowners in our state cover operating expenses, purchase supplies and equipment, and do business with local companies, creating a positive economic ripple effect throughout our rural communities," said Starlyn Perdue, State Executive Director in Iowa. "It's a tremendous investment in Iowa agriculture and, collectively, in American agriculture."

ARC and PLC Working Families Tax Cuts Act Improvements

The Working Families Tax Cuts Act (WFTCA) strengthens ARC and PLC beginning with the 2025 crop year, including higher statutory reference prices and improvements to the effective reference price calculation. Additionally, for the 2025 crop year only, producers automatically receive the higher payment rate of either ARC or PLC, regardless of their program election. The WFTCA also increases the ARC and PLC payment limit from $125,000 to $155,000, starting with the 2025 crop year with annual adjustments based on inflation. The payment limit for the 2025 crop year is $160,000.

The following 10 crops in Iowa triggered a PLC payment for the 2025 crop year: corn, soybeans, oats, wheat, barley, grain sorghum, sunflower seed, flaxseed, dry peas, and crambe.

Producers receiving ARC and PLC payments are reminded that this does not account for payment limitation reductions and the 5.7% sequestration rate required by statute that will be applied to all ARC and PLC payments. ARC-County (ARC-CO) payments are based on county-level revenue and therefore trigger at the county level. FSA will issue payments to eligible producers as calculations are completed.

Also, the ARC and PLC election and enrollment period for the 2026 crop year opened Sept. 16 and runs through Dec. 11, 2026, and for the 2027 crop year from Nov. 2, 2026, through March 15, 2027. The WFTCA added an additional 30 million new base acres to farms nationwide. Because eligible acres exceeded the nationwide 30-million-acre cap, FSA applied an across-the- board, prorated reduction of 3.69% to all newly allocated base acres. In Iowa, 1.49 million additional base acres were added. These additional base acres impact ARC and PLC starting with the 2026 and future crop years, further improving the farm safety net.

Through annual election and enrollment on covered commodities, ARC and PLC protect producers from substantial declines in crop prices or revenues. PLC provides income support when the effective price for a covered commodity falls below its effective reference price. ARC provides income support when actual crop revenue falls below a guaranteed level. Depending on the coverage elected, ARC protection is based on either county-level revenue or the revenue of an individual farm.

Producers with questions about ARC or PLC enrollment or 2025 crop year payments should contact their local FSA county office.

CRP Acres and Impact

CRP payments to agricultural producers and private landowners for 2026 cover 1.6 million acres currently under active CRP contracts in Iowa. These annual rental payments are made to eligible landowners who establish long-term, resource-conserving vegetative covers. CRP payments support participating landowners while protecting natural resources, enhancing wildlife habitat and strengthening rural economies.

Grassland CRP continues to play an important role in working lands conservation. Following 2026 enrollment, Grassland CRP is expected to account for more than 40% of all CRP enrolled acreage nationwide, helping ranchers conserve valuable grasslands while maintaining livestock grazing and haying operations.

Questions about participation in CRP and 2026 annual rental payments should be directed to the local FSA county office.