The heat is on

We certainly are getting plenty of growing degree units right now. Let’s hope that extreme weather does not affect pollination.

Thank you to all the producers who made crop reporting a priority by the July 15 deadline. For those who did not, it will cost $46 per farm to late certify your crops.

We await future program rollouts to identify just how important crop certification is. Risk Management Agency crop insurance uses this data as a baseline for the work they do. Nominations for the county committee election process are due Aug. 1. If you are interested in being on your local county committee, please contact your office to see if your area of the county is up for election. Form CCC-669A must be signed before that deadline.

USDA expands payment limitation, payment eligibility provisions

The U.S. Department of Agriculture’s Farm Service Agency 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 LLCs, S-Corporations and other similar entities as “pass-through entities.” Each member of the qualified pass-through entity who meets the 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. 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, attribution

Payment limitation changes include an increased payment limit for the Agriculture Risk Coverage and Price Loss Coverage 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 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.

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 deadline for the 2026 program year.

Farm stress

We know there is a lot of stress in the ag community right now. If you recognize this stress in your family members or friends, do not hesitate to seek appropriate help.

The Minnesota Farm and Rural Helpline is a free, confidential service that provides support for people struggling with stress, anxiety, depression or suicidal thoughts related to farm and rural life. The helpline is available 24/7 and can be reached by calling (833) 600-2670, texting FARMSTRESS to (898) 211 or emailing farmstress@state.mn.us.

Most importantly, make safety your number one priority this summer. Be proud of what you have accomplished this year. We certainly are proud of you.

Farm Service Agency is an equal opportunity lender. Complaints about discrimination should be sent to: Secretary of Agriculture, Washington, D.C., 20250. Visit www.fsa.usda.gov for application forms and updates on USDA programs.