What does this research mean for the field?

The One Big Beautiful Bill Act (OBBBA) is projected to increase total agricultural risk coverage and price loss coverage payments for corn, soybeans, and wheat by $4.65 billion in 2025 and $1.30–$2.13 billion in 2026 compared to the 2018 Farm Bill, with significant regional heterogeneity. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

This study aims to project the effects of the One Big Beautiful Bill Act on farm safety net payments for key crops.

July 27, 2026Applied Economic Perspectives and Policy0 citationsOpen Access

Expanded Farm Safety Net Payments Under the One Big Beautiful Bill Act

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OWOranuch Wongpiyabovorn TPTayatorn Pongspikul APAlejandro Plastina

Key Points

This study aims to project the effects of the One Big Beautiful Bill Act on farm safety net payments for key crops.
Projected increases in agricultural risk coverage and price loss coverage payments for corn, soybeans, and wheat.
Comparison of payment projections under the One Big Beautiful Bill Act versus the 2018 Farm Bill.
Total projected program payments would increase by $4.65 billion for crop year 2025.
Projected payments for crop year 2026 may range from $1.30 billion to $2.13 billion depending on enrollment rates.
High regional variability in payment increases observed across different areas.

Abstract

ABSTRACT The One Big Beautiful Bill Act (OBBBA) strengthens the agricultural risk coverage (ARC) and price loss coverage (PLC) programs by aligning program parameters more closely with recent market dynamics and allows for an expansion in program acres. This study projects the increases in ARC‐County and PLC payments for corn, soybeans, and wheat under OBBBA, compared with those under the 2018 Farm Bill. Total projected program payments would increase by 4. 65 billion for crop year 2025 and 1. 30–2. 13 billion for crop year 2026 (depending on the relative enrollment rates), with high regional heterogeneity. JEL Classification: Q14, Q18

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Expanded Farm Safety Net Payments Under the One Big Beautiful Bill Act

Key Points

Abstract

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