URBANA, Ill. (RFD NEWS) — Federal farm payment policy may be increasingly misaligned with today’s production realities, raising equity concerns and potential market distortions as new base acres are allocated in 2026.
Jonathan Coppess, with the University of Illinois Department of Agricultural and Consumer Economics and former Administrator of the U.S. Department of Agriculture (USDA) Farm Service Agency, says the USDA’s continued reliance on decoupled base acres rewards historical planting decisions rather than current risk exposure.
In a January 15 farmdoc daily analysis, Coppess explains that ARC and PLC payments are tied to base acres, not planted acres, allowing farmers to receive payments for crops they do not grow. With USDA signaling it will prioritize assigning new base acres to formerly unassigned cotton acres, those design flaws are returning to the forefront as program signups are delayed.
Using national average data, Coppess shows that crops with high base-acre payment rates — particularly rice, peanuts, and seed cotton — generate significantly higher total returns when corn or soybeans are planted on those base acres. Two producers growing the same crop can receive vastly different income outcomes solely because of their base-acre history.
Those disparities may influence planting decisions, especially as higher ARC and PLC payments take effect under the Reconciliation Farm Bill. Coppess cautions that this could contribute to oversupply risks in corn and soybeans.
Farm-Level Takeaway: Decoupled base acres may amplify income inequality and distort planting decisions as farm program payments increase.
Tony St. James, RFD NEWS Markets Specialist
Jake Charleston of Specialty Risk Insurance shares risk-reduction strategies to help cattle producers prepare for a successful year ahead.
December 23, 2025 01:45 PM
·
Oregon FFA CEO Kjer Kizer discusses the proposed budget reductions, potential consequences, and the importance of protecting learning opportunities for students interested in agriculture.
December 23, 2025 01:34 PM
·
RealAg Radio host Shaun Haney explains why the 2026 USMCA review could directly affect dairy access, produce competition, and export reliability for U.S. farmers and ranchers.
December 23, 2025 01:04 PM
·
More than 1,100 residents and farmers have signed a letter urging Ag Secretary Brooke Rollins to step in, saying the proposal threatens irrigation supplies and long-term farm viability in the region.
December 23, 2025 11:37 AM
·
Producers across the country balanced winter weather disruptions, shifting export demand, and tightening margins as year-end decisions come into focus.
December 22, 2025 03:50 PM
·
Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
December 22, 2025 03:19 PM
·
Canada’s new voluntary Grocery Sector Code of Conduct will take effect on Jan. 1, a goodwill effort to promote fairness and transparency between retailers and support farms that sell directly to stores.
December 22, 2025 02:54 PM
·
With record grain harvests and rising global ethanol demand, leaders across the ag and energy sectors are pushing for year-round E15 sales to mitigate the strain on grain trade.
December 22, 2025 02:45 PM
·
Small, locally focused wineries are finding resilience through direct sales and regional loyalty rather than scale alone.
December 22, 2025 02:05 PM
·
