{"id":4002,"date":"2025-10-16T14:31:11","date_gmt":"2025-10-16T19:31:11","guid":{"rendered":"https:\/\/agrilife.org\/agecon\/?p=4002"},"modified":"2026-01-29T09:06:29","modified_gmt":"2026-01-29T15:06:29","slug":"changes-to-the-plc-program-in-the-one-big-beautiful-bill-act","status":"publish","type":"post","link":"https:\/\/agrilife.org\/agecon\/changes-to-the-plc-program-in-the-one-big-beautiful-bill-act\/","title":{"rendered":"Changes to the PLC Program in the One Big Beautiful Bill Act"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4006 alignleft\" src=\"https:\/\/agrilife.org\/agecon\/files\/2025\/10\/Title-Picture.png\" alt=\"Pictures of cotton, wheat, sorghum, and corn\" width=\"342\" height=\"229\" \/>On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. The law included changes to the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. In this post, we explain what has changed for PLC and how payments under this program might be affected.<!--more--><\/p>\n<h2>Changes to the PLC Program<\/h2>\n<p>The Price Loss Coverage (PLC) program is designed to protect producers from severe losses due to extremely low commodity prices. PLC makes payments when a covered commodity\u2019s market year average (MYA) price falls below its statutory reference price. Congress sets a statutory reference price for each covered commodity in law. However, a commodity\u2019s effective reference price can increase if market prices rise sufficiently.<\/p>\n<div id=\"attachment_4008\" style=\"width: 634px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4008\" class=\"size-full wp-image-4008\" src=\"https:\/\/agrilife.org\/agecon\/files\/2025\/10\/Table-1.png\" alt=\"Table comparing the rules regarding PLC reference prices in the 2018 Farm Bill to the Rules in the OBBBA\" width=\"624\" height=\"118\" \/><p id=\"caption-attachment-4008\" class=\"wp-caption-text\">Table 1<\/p><\/div>\n<p>OBBBA makes two changes to reference prices. First, it adjusts the calculation of effective reference prices, as explained in Table 1 (above). Second, it raises the statutory reference prices for most covered commodities. Table 2 compares the statutory and effective reference prices for selected crops in the 2018 Farm Bill to those set by OBBBA.<\/p>\n<div id=\"attachment_4009\" style=\"width: 634px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4009\" class=\"size-full wp-image-4009\" src=\"https:\/\/agrilife.org\/agecon\/files\/2025\/10\/Table-2.png\" alt=\"Table comparing reference prices in the 2018 Farm Bill to the prices in the OBBBA\" width=\"624\" height=\"157\" \/><p id=\"caption-attachment-4009\" class=\"wp-caption-text\">Table 2<\/p><\/div>\n<h2>Potential Impact on Projected 2025\/26 Payments<\/h2>\n<p>Table 3 illustrates how OBBBA\u2019s modifications to the PLC program influence the projected payment rates for selected crops. The table provides the expected 2025 MYA price for each commodity, along with the effective reference price and payment rate, as outlined in the 2018 farm bill and OBBBA regulations. For most commodities, the projected payment rates under OBBBA are higher than under the 2018 farm bill rules. In some cases, the difference is significant.<\/p>\n<div id=\"attachment_4010\" style=\"width: 634px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4010\" class=\"size-full wp-image-4010\" src=\"https:\/\/agrilife.org\/agecon\/files\/2025\/10\/Table-3.png\" alt=\"Table comparing projected payment rates in 2025 using the 2018 reference prices and the OBBBA prices\" width=\"624\" height=\"142\" \/><p id=\"caption-attachment-4010\" class=\"wp-caption-text\">Table 3<\/p><\/div>\n<h2>One Thing to Keep in Mind: Sometimes Things Change<\/h2>\n<p>The information presented here is based on our best reading of the text of the One Big Beautiful Bill Act. We assume that the USDA will implement the changes that OBBBA makes to the PLC program as outlined in the law. However, things can and do change during implementation, and any such changes will affect the payment rates we estimate here. Readers should keep this reality in mind as they consider how the OBBBA\u2019s changes to PLC will affect their operations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. The law included changes to the Agriculture Risk Coverage (ARC) and Price Loss Coverage&#8230; <span class=\"read-more\"><a href=\"https:\/\/agrilife.org\/agecon\/changes-to-the-plc-program-in-the-one-big-beautiful-bill-act\/\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2184,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[16,18],"tags":[],"class_list":["post-4002","post","type-post","status-publish","format-standard","category-ag-policy","category-crops","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Changes to the PLC Program in the One Big Beautiful Bill Act - Ag Economics on the Plains<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/agrilife.org\/agecon\/changes-to-the-plc-program-in-the-one-big-beautiful-bill-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Changes to the PLC Program in the One Big Beautiful Bill Act - Ag Economics on the Plains\" \/>\n<meta property=\"og:description\" content=\"On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. 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