By Andi Anderson
In December 2024, the U.S. Congress passed the American Relief Act of 2025 to support farmers facing economic and natural disaster challenges. Signed into law by President Biden, the Act extends the 2018 Farm Bill into 2025 and offers significant financial relief through disaster and economic assistance programs.
Continuing Legislation
The Act allows farmers to choose between Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) for 2025 base acres. It also allocates $20.78 billion for disaster aid to address losses caused by droughts, floods, and other natural calamities in 2023 and 2024.
Economic Assistance Payments
The Act includes $10 billion in economic aid, providing per-acre payments to offset economic losses for 2024 crops. Payments are calculated based on production costs, price forecasts, and yield averages. Estimated per-acre rates include $42.51 for corn and $29.50 for soybeans. For example, a farm with 600 acres of corn and 500 acres of soybeans will receive $40,253 in aid.
Farmers with over 75% of their Adjusted Gross Income (AGI) from agriculture can receive up to $250,000 in aid, while others are capped at $125,000. Payment limits ensure fair distribution of funds among eligible farmers.
Impacts of Assistance
The aid helps reduce projected losses but does not entirely cover costs. For central Illinois farmers, adding payments to returns still results in negative income for 2024. While the assistance improves working capital and supports loan renewals, it may delay cost adjustments, such as reduced cash rents or lower input prices.
The American Relief Act of 2025 highlights the government’s commitment to stabilizing the agricultural sector, offering farmers much-needed relief during challenging times. Farmers and lenders alike welcome this vital support.
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Categories: National