LUBBOCK, Texas (RFD-TV) — Cotton producers are urged to contact their local Farm Service Agency (FSA) office as the September 30 deadline approaches for program enrollment. Recent changes to the Stacked Income Protection Program (STAX), Agriculture Risk Coverage (ARC), and Price Loss Coverage (PLC) programs stem from the “One, Big, Beautiful Bill” Act signed into law on July 4, which updated reference prices for the 2025 crop year.
Typically, farmers choosing STAX were ineligible for ARC or PLC. However, the U.S. Department of Agriculture (USDA) acknowledges that many may have chosen PLC had they been aware of the updated reference prices. The agency is allowing late enrollment in PLC, although acres switched out of STAX remain subject to a penalty equal to 60 percent of the premium, as acreage reports cannot be revised.
Producers enrolling seed cotton acres in PLC or ARC by September 30 will forfeit STAX payments. The USDA expects PLC payments for 2025 to be made next fall, while STAX payments will be announced in summer 2026. Once changes are made, growers cannot reverse their decision, even if STAX would have provided a larger payment.
Tony’s Farm-Level Takeaway: Cotton farmers should weigh potential PLC payments against STAX coverage and act before the September 30 deadline. Local FSA offices can help navigate the options and implications.
The University of Missouri Ag Policy Research Institute found that farmers with eligible base acres would see payments increase this year, primarily due to the rise in ARC and PLC. Economists estimate cotton payments will rise 177 percent, peanuts up 205 percent, and rice farmers will gain 222 percent.
Farm CPA Paul Neiffer has developed a detailed calculator to help producers navigate the program’s requirements. He joined us on Thursday’s Market Day Report to explain how it works.
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