The One Big Beautiful Bill Act (OBBB) was enacted on July 4, 2025, following approval through the budget reconciliation process. Several provisions in the OBBB are traditionally addressed through the Farm Bill which is still anticipated to pass at a later date and incorporate additional measures that were not covered under the scope of the OBBB.
The OBBB extends the Farm Service Agency’s Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs through 2031, introducing some enhancements that are effective for the 2025 crop year. Other key updates include increased payment limitations, dedicated funding for livestock disease prevention, improvements to livestock disaster assistance programs, and a one-time voluntary opportunity to establish new base acres in 2026.
In the area of crop insurance, the OBBB introduces several significant enhancements aimed at improving affordability and effectiveness for most policyholders. Notable changes impacting Missouri growers beginning with the 2026 crop year include:
- Expanded Beginning Farmer and Rancher (BFR) Eligibility: The definition of a BFR is revised to extend eligibility from 5 to 10 years. Subsidy rates will increase to a sliding scale—15% in years 1–2, 13% in year 3, 11% in year 4, and 10% for years 5–10.
- SCO Endorsement Availability: The Supplemental Coverage Option (SCO) endorsement will now be available to producers participating in either the ARC or PLC programs.
- Increased Endorsement Subsidies: Subsidy rates for SCO, Enhanced Coverage Option (ECO), and Margin Coverage Option (MCO) endorsements will rise from 65% to 80%.
- Premium Support Enhancements: Revenue Protection (RP) and Yield Protection (YP) policies will see increased premium support subsidies, rising 3% to 5% for select coverage levels and unit structures.
- Strengthened Compliance Oversight: Additional funding has been allocated to enhance oversight and ensure compliance within the crop insurance program.
The insurance provisions included in the OBBB Act represent some of the most comprehensive enhancements to the federal crop insurance program in recent years. We strongly encourage producers to meet with their local FCS Financial agent to review coverage options for the 2026 crop year and ensure they are maximizing the value of their premium investment.
