USDA Announces Additional ECAP Payments

Crop producers across the United States are dealing with either negative or very tight cash flow situations due to continued low commodity prices and high crop input costs. USDA is projecting record national average corn and soybean yields in 2025; however, even that will not be enough to offset the negative margins in crop production that exist in most areas. As a result, crop producers have had to rely on several rounds of various government payments to help sustain the cash flow in their farming business. Farmers in areas that had very poor yields in 2024 benefitted from the Supplemental Disaster Relief Program (SDRP) payments that were paid a few months ago, and could receive potential 2024 corn and soybean ARC-CO payments in October this year. Last Spring, all producers of eligible crops received 2024 Economic Community Assistance Program (ECAP) payments. USDA has now announced that farmers will receive an additional round of 2024 ECAP payments.
Details on the additional 2024 ECAP Payments
USDA has announced that an additional round of Economic Commodity Assistance Program (ECAP) payments will be paid to eligible crop producers. The ECAP payments were implemented to offset low crop commodity prices in 2024 and early 2025, as well as poor profit margins for the producers of most major crops raised in the U.S. The initial ECAP payments paid 85 percent (.85) of the total eligible ECAP amount. The second ECAP payment will be an additional 14 percent (.14) of the original total amount, bringing the total to 99 percent of the maximum 2024 ECAP payment. There will not be an application process and the second ECAP payments will be automatically paid to eligible producers. Here are some details on the second round of ECAP payments:
ECAP payment rates --- The total ECAP commodity payment rates ranged from near $11.36 per acre for mustard seed to $84.74 per acre for cotton. Following are the estimated additional CFAP payment rates for some common crops in the Midwest that will likely be paid in this round of payments (as well as the maximum ECAP rates):
Corn = $6.00 per acre ($42.91/A max. amount x .14)
Soybeans = $4.16 per acre ($29.76/A max. amount x .14)
Wheat = $4.29 per acre ($30.69/A max. amount x .14)
Sorghum = $5.95 per acre ($42.52/A max. payment x .14)
Barley = $3.03 per acre ($21.67A max. payment x .14)
Oats = $10.87 per acre ($77.66/A max. payment x .14)
ECAP payment example --- Following is an example of a farm that normally has 1,600 crop acres. In 2024, the FSA acreage report for the farm listed 800 acres of corn planted, 800 acres of soybeans planted:
Corn --- 800 A. x $42.91/A = $34,328
Soybeans --- 800 A. x $29.76/A. = $23,808
Maximum Total ECAP Payment = $58,136
x 85% (.85)
First ECAP Payment = $49,415
Second ECAP Payment = $ 8,139 ($58,136 x 14% (.14)
2024 ARC-CO Payments for Corn and Soybeans
This summary is based on the national average price (MYA) estimates in the September 12 WASDE report, following the completion of the 2024-25 marketing year for corn and soybeans. USDA will announce the final 2024 MYA price on September 30, 2025 that will be used to calculate the actual 2024 farm program payments. The final MYA prices are not likely to vary significantly from the September 12 WASDE report.
Here are the 2024 PLC and ARC-CO payment estimates for corn and soybeans:
Corn --- The 2024 PLC corn reference price was $4.01 per bushel and the benchmark price for ARC-CO payments was $4.85 per bushel. Based on the September WASDE report, the current estimate for the 2024
MYA corn price is $4.30 per bushel. This is $.29 per bushel above the threshold for 2024 corn PLC payments, so there will be no 2024 PLC payments. The estimated MYA price is $.55 below the 2024 benchmark price, which will likely initiate 2024 ARC-CO payments in many counties with reduced corn yields in 2024. At the current 2024 MYA price estimate, ARC-CO payments would initiated with a final 2024 county corn yield that is about 3-4 percent below the county benchmark yield.
Based on the current MYA price estimate of $4.30 per bushel, eligible farmers in 19 counties in Minnesota will receive the maximum ARC-CO payment for corn, farmers in 10 counties will receive two-thirds or more of the maximum payment, and farmers in 22 counties will receive a smaller 2024 ARC-CO payment.
Soybeans --- The 2024 PLC soybean reference price is $9.26 per bushel and the 2024 benchmark price for ARC-CO payments is $11.12 per bushel. Based on the September WASDE report, the current estimate for the 2024 MYA corn price is $10.00 per bushel. This is $.74 per bushel above the threshold for 2024 soybean PLC payments, so there will be no 2024 PLC payments. The estimated MYA price is $1.12 below the 2024 benchmark price, which will likely initiate 2024 ARC-CO payments in many counties with reduced soybean yields in 2024. At the current 2024 MYA price estimate, ARC-CO payments would initiated with a final 2024 county soybean yield that is 2-3 bushels below the county benchmark yield.
Based on the current MYA price estimate of $10.00 per bushel, eligible farmers in 23 counties in Minnesota will receive the maximum ARC-CO payment for corn, farmers in 6 counties will receive two-thirds or more of the maximum payment, and farmers in 26 counties will receive a smaller 2024 ARC-CO payment.
Kent Thiesse has prepared two information sheets on 2024 ARC-CO payments for corn and soybeans:
· “Estimated 2024 ARC-CO Payment Tables For All MN Counties”.
· “2024 Farm Program Payment Estimates” (including general ARC-CO tables). To receive a free copy of either information sheet, send an email to: [email protected]
Potential for future Farm Program Payments
Here is an overview of other potential government assistance payments that farmers could possibly receive later this year or early in 2026:
Additional SDRP payments --- The first round of 2023 and 2024 Stage 1 SDRP (disaster) payments were paid at a rate of 35 percent (.35) of the total eligible SDRP amount. Stage 1 payments were to eligible crop producers that carried federal crop insurance policies in 2023 and 2024. SDRP “Stage 2” will include assistance for losses from uncovered losses, quality losses, and shallow losses that did not meet the threshold requirements for Stage 1 SDRP payments. It is possible that there could be a second SDRP payment later this year, if disaster funds remain after all “Stage 1” and “Stage 2” applications have been finalized; however, that payment amount will likely be smaller than the initial SDRP payment amount.
Economic Relief for the 2025 crop year --- Recently, there have been discussions by Congress and USDA regarding the potential for additional government assistance payments for the 2025 crop year to offset the continued low commodity prices and the negative impacts of the U.S. tariffs. It is not clear how these additional payments would be funded. There has also been no indication if these payments would be similar to last year’s ECAP payments, or would be structured similar to the Market Facilitation Program (MFP) payments in the first Trump administration that structured payments on a commodity-by-commodity basis, based on the calculated impact of the tariffs on a commodity. Any additional 2025 economic assistance payments would likely come late in 2025 or in early 2026.
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone --- (507) 381-7960; E-mail --- [email protected]