The U.S. Department of Agriculture is expanding payment eligibility and payment limitation rules beginning with the 2026 crop year.
The changes will allow qualifying LLCs, S-corporations and similar farm entities to be treated as pass through entities, give more producers access to farm program benefits while maintaining legal protections for their operations.
USDA says the changes will provide more flexibility in how farms are structured and strengthen the agricultural safety net. The Agriculture Risk Coverage and Price Loss Coverage payment limit will increase from $125,000 to $155,0000 beginning with the 2026 crop year and will be adjusted annually for inflation.
The new law also broadens the definition of farming income to include activities such as agri-tourism and direct to consumer sales, helping more producers qualify for exemptions to income limits. Farmers using newly eligible business structures must update their farm operating plans with the Farm Service Agency by September 15th.
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