Farmer Bridge Assistance Payment Rates Announced

At the end of December, USDA announced the payment rates for the various crops that are included in the “Farmer Bridge Assistance” (FBA) program. A total of $12 billion was allocated for the FBA program to provide economic assistance payments to producers of certain crops to offset low prices and poor profit margins for the 2025 crop year, as well as the market price impacts from tariffs on export markets for certain crops in the past year. Of that total, $11 billion of the payments will be paid to producers of traditional farm program Title I crops, which includes corn, soybeans, wheat, cotton, and rice. The remaining $1 billion will be held back for economic assistance for specialty crop producers.
 
FBA payments will be based on the 2025 planted acres of eligible crops, as reported to local Farm Service Agency (FSA) offices on or before December 19, 2025. Any prevent plant acres in 2025 are not eligible for the FBA payments. The payment amounts for each crop were based on the national average yield times the projected 2025-26 market year average (MYA) price in the December 9, 2025 WASDE report, minus the 2025 average production cost for a commodity, based on USDA Economic Research Service (ERS) data. The MYA prices in the December WASDE report were $4.00 per bushel for corn, $10.50 per bushel for soybeans, and $5.50 per bushel for wheat.
 
Following are the FBA economic assistance payment rates that were announced foe some of the most common crops:

• Corn - $44.36 per acre 
• Soybeans -  $30.88 per acre
• Wheat - $39.35 per acre
• Oats - $81.75 per acre      
• Barley - $20.51 per acre
• Peas - $19.60 per acre
• Sorghum - $48.11 per acre
• Cotton - $117.35 per acre
• Rice - $132.89 per acre
• Peanuts - $55.65per acre

FBA payment rates were also announced for canola, chickpeas, flax, mustard, safflower, sesame, and sunflower. No details have been released on how the $1 billion in specialty crop funds will be allocated.
 
Applications for the FBA program will be made through local Farm Service Agency (FSA) offices. FSA will provide a pre-filled FBA application form to producers that will list the 2025 crop acreage and other pertinent information. Producers will then need verify the information and sign the application form. The pre-filled application forms should be available at FSA offices by the week of February 23. Distribution of the FBA payments is expected to begin by February 28.
 
The payment limit for the FBA payments will be $155,000 per eligible person or legal entity. There will not be higher payment limits based on having 75 percent of taxable income received from farming enterprises, similar to some previous FSA programs. Entities such as corporations, LLC’s, S corporations, and trusts will be limited to one payment limit of $155,000. Any person or legal entity with an adjusted gross income (AGI) exceeding $900,000, based on FSA criteria, will not be eligible to receive any FBA payments.
 
Farmers seeking more information on the “Farmer Bridge Payments” can contact their local FSA office. For more information on the FBA program requirements and payment rates can go to the USDA FBA website at:
https://www.fsa.usda.gov/resources/programs/farmer-bridge-assistance-fba-program
Following are some common questions regarding the Farmer Bridge Assistance (FBA) Payments:
Why are the FBA payments needed ?
Depending on the final 2025 crop yield, the typical Midwest crop producer probably has a breakeven market price of $4.50 to $5.25 per bushel for the 2025 corn crop to cover all production expenses (not including any profit). The 2025 breakeven price for most farmers is likely $10.50 to $11.50 per bushel for soybeans, and over $6.00 per bushel for wheat. As was mentioned earlier, USDA is currently estimating the 2025-26 MYA prices at $4.00 per bushel for corn, $10.50 per bushel for soybeans, and $5.00 per bushel for wheat, which are all well below breakeven levels for many producers. The USDA Economic Research Service (ERS) is estimating that based on the average crop revenue (est. national average yield x projected MYA price) minus the average 2025 cost of production (farm input and overhead expenses), the average farmer will have the following estimated negative profit margins for 2025:

• Corn - Minus ($169) per acre
• Soybeans - Minus ($114) per acre
• Wheat - Minus ($112) per acre

 
Based on these estimates and the listed FBA payment rates, the FBA payments will cover approximately 26 percent of the estimated shortfall for corn, 27 percent of the estimated shortfall for soybeans, and 35 percent of the estimated shortfall for wheat.
 
Are the payment amounts for the various crops equitable ?
Some Midwest crop producers have questioned the rather high per acre payment amounts for some of the crops typically raised in Southern States, such as FBA payment rates of $132.89 per acre for rice, $117.35 per acre for cotton, and $55.65 per acre for peanuts. Based on the USDA ERS economic data referenced earlier, the estimated 2025 negative profit margins are minus ($379) per acre for cotton, minus ($173) per acre for peanuts, and minus ($154) per acre for rice. Based on these estimates, the FBA payment rates account for approximately 31 percent of the shortfall for cotton and 32 percent of the shortfall for peanuts, which is similar to the percentage for wheat; however, the FBA payment rate for rice would cover about 86 percent of the projected profit margin shortfall. It should be noted that one of the largest negative profit margins per acre in the Upper Midwest in 2025 was on sugar beets, which are not covered by the initial round of FBA payments.
 
It is estimated that $4.3 billion or 39 percent of the $11 billion total for FBA payments will be allocated for corn payments. Other estimated total payment amounts for various commodities include soybeans at just under $2.5 billion (22.5%), wheat at $1.9 billion (17.2%), cotton at $942 million (8.5%), and rice at $368 million (3.3%). The Midwest and Corn Belt States are projected to receive approximately $6.9 billion (64%) in total FBA payments, while Southern and Southwest States are projected to receive about $2.8 billion (26%), with the balance going to California and the Western States, as well as to the Northeastern States.
 
How many acres will be required to reach the $155,000 FBA payment limit ?
Following are examples of the estimated acres required to reach the $155,000 payment limit with various crop mixtures:

• 100% Corn ($44.36/A.)  = 3,494 acre
• 100% Soybeans ($30.88/A.)  = 5,019 acres
• 100% Wheat ($39.35/A.)  = 3,939 acres
• 2/3 Corn; 1/3 Soybeans (ave. $39.86/A.)  = 3,889 acres
• 1/2 Corn; 1/2 Soybeans (ave. $37.62/A.)  = 4,120 acres
• 1/3 Corn; 1/3 Soybeans; 1/3 Wheat (ave. $38.20/A.)  = 4,058 acres

 
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group
Phone - (507) 381-7960; E-mail - [email protected]