Thanks to provisions in the “Big, Beautiful Bill,” base acres are set to increase for farmers starting next year, with the maximum national increase limited to 30 million acres. Farm CPA and RFD-TV Tax Expert Paul Neiffer joined us on Thursday’s Market Day Report for a closer look.
In his interview with RFD-TV’s own Suzanne Alexander, Neifer provides details on the increase in base acres, how it varies state-by-state, and which states could see the most significant increases. He also explains how this will affect ARC and PLC payments, and provides other business planning tips for farmers and ranchers to prepare for this change.
Base acres represent a fixed, historical allocation of specific commodity crop acres for a farm, specifically designated for use within the programs administered by the USDA’s Farm Service Agency (FSA). It’s important to note that these base acres are not contingent upon a farm’s current planting decisions; they are established retrospectively.
The determination of a farm’s eligibility for various government support programs, such as the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) initiatives, is fundamentally based on the established base acres. These government programs provide financial assistance, with payments calculated based on a farm’s historical production records, rather than any current season’s yields.
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