PARKER, COLO. (RFD NEWS) — Farmers have until September 15 to make certain entity changes needed to qualify for 2026 Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC) payment limits.
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to discuss the deadline and what farmers should know before September 15.
Entity Changes Must Be in Place
In his interview with RFD News, Neiffer stressed that the entity change itself must be in effect by September 15, although the reporting paperwork may not necessarily have to be filed by that date.
“Well, you know, that’s our understanding,” Neiffer said. “If you read the final rule, the change has to be in effect by September 15.”
He said farmers should contact their local Farm Service Agency (FSA) office to confirm what documentation the office wants completed.
For many farmers, Neiffer said, the change may not require a major restructuring. Instead, it could involve updating how an existing entity is classified.
For example, farmers operating as an LLC under the old rules may need to indicate whether the LLC is taxed as a partnership, S corporation or C corporation.
If the entity is taxed as a partnership or S corporation, it may qualify as a “qualified pass-through entity,” which can increase payment limits based on the number of owners.
“If you’re still a C corp, you’re stuck with one payment limit,” Neiffer said.
He emphasized that the key is making sure the entity change itself is completed by September 15.
Who Is Most Affected?
The farmers most affected by missing the deadline are those expecting a large amount of ARC or PLC payments or other types of payments, according to Neiffer.
However, he said current projections for 2026 ARC and PLC payments are significantly smaller than projections for 2025.
“Right now, my projections on ’26 ARC and PLC are very, very, very, very small compared to 2025,” Neiffer said.
As a result, some producers who expected the entity changes to provide a significant benefit may not see much benefit from the payment limit changes based on current projections.
Contact the Local FSA Office
Neiffer recommended that farmers contact their local FSA office now rather than waiting until the deadline.
“I would just, to be safe, you know, ask the local office,” he said. “We can have the national rule, but most cases, really, the reality is, what does the local office tell you what do they want done? Just go ahead and do that.”
For farmers considering an entity change ahead of the September 15 deadline, confirming requirements with their local FSA office can help ensure the change is properly documented and in place on time.
