Farm Service Agency

The 2018 Farm Bill – What Is New and 

What Has Changed

USDA is an equal opportunity provider, employer, and lender.

The Agriculture Improvement Act of 2018 (the 2018 Farm Bill), signed by President Trump on Dec. 20, 2018, 

reauthorizes all programs administered by the Farm Service Agency (FSA) and makes modifications to 

most of them. Most of the programs are authorized through 2023. A select few are authorized and funded 

indefinitely.

Safety Net, Price Support, and Conservation Overview

• The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs are continued with 

some modifications. ARC and PLC are authorized from 2019 to 2023 for all covered commodities, 

including seed cotton. Producers may make a new election to obtain either ARC or PLC for the 2019 

crop year. That election also applies for the 2020 crop year. Producers may change elections annually 

during the 2021 through 2023 crop years. Owners can update the farm’s PLC payment yield beginning 

with the 2020 crop year.

• Commodity loan rates increased for all crops except minor oilseeds, wool, mohair, honey, peanuts, 

and upland cotton. Marketing loan gains (MLGs) and loan deficiency payments (LDPs) are no longer 

subject to payment limitations, actively engaged in farming and cash-rent tenant rules. 

• Buy-up coverage under the Noninsured Crop Disaster Assistance Program (NAP) is now part of 

permanent program authorization. Basic coverage has a payment limitation of $125,000 per person and 

legal entity, while the payment limitation for buy-up coverage is a separate $300,000. Service fees for 

applications for coverage have increased, while the premium amounts for buy-up NAP coverage are 

unchanged. 

• The Livestock Indemnity Program (LIP), the Emergency Assistance for Livestock, Honeybees, and 

Farm-Raised Fish Program (ELAP), the Livestock Forage Disaster Program (LFP), and the Tree 

Assistance Program (TAP) remain authorized and have minimal changes. 

• The Dairy Margin Coverage Program (DMC) has replaced the Margin Protection Program for Dairy 

(MPP). If an operation makes a one-time election to participate in DMC from enrollment through 

2023, the operation is eligible to receive a 25 percent discount on the existing margin coverage rates. 

The maximum level for operations with covered production history of less than five million pounds is 

increased to $9.50. A dairy operation that enrolled in MPP any year from 2014-2017 may be eligible 

to receive a refund of premiums paid if the premium paid exceeds the MPP payments received by the 

operation. Producers who enrolled in the Livestock Gross Margin for Dairy Cattle program (LGM) in 

2018 may enroll in 2018 MPP retroactively. 

• The acreage cap for the Conservation Reserve Program (CRP) gradually increases to 27 million acres 

by 2023. At least 8.6 million acres must be devoted to continuous practices and 2 million acres to 

grassland. Two pilot programs are authorized: CLEAR 30 (Clean Lakes, Estuaries, and Rivers Initiative) 

and the Soil Health and Income Protection Pilot Program (SHIPP). 
The 2018 Farm Bill – FSA: What Is New and What Has Changed

2 USDA is an equal opportunity provider, employer, and lender.

Credit Overview

• The Direct Farm Ownership loan limit is increased to $600,000 and the Guaranteed Farm Ownership loan 

limit is increased to $1,750,000. 

• The Direct Operating loan limit is increased to $400,000 and the Guaranteed Operating loan limit is 

increased to $1,750,000. 

• A farmer or rancher may receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating 

Microloan. Previously, microloans were limited to a combined total of $50,000 for both Farm Ownership 

and Operating Microloans.

Average Adjusted Gross Income (AGI)

• AGI compliance provisions are unchanged. Persons and legal entities whose average AGI exceeds 

$900,000 are ineligible for payments under most programs administered by FSA and the Natural 

Resources Conservation Service (NRCS).

• The Secretary may waive the AGI limitation on a case-by-case basis if the Secretary determines that 

environmentally sensitive land of special significance would be protected as a result of such waiver.
The 2018 Farm Bill – FSA: What Is New and What Has Changed

3 USDA is an equal opportunity provider, employer, and lender.

Payment Limitation

A comparison of payment limitation applications under the 2014 Farm Bill as amended and under 

the 2018 Farm Bill.

Program – each row 

represents a separate 

payment

Per Person or Legal Entity 

Annual Payment and/or 

Acreage Limitation under 

the 2014 Farm Bill, as 

amended

Per Person or Legal Entity 

Annual Payment or Acreage 

Limitation under the 2018 

Farm Bill

ARC, PLC, LDP, and MLG 

payments – other than 

peanuts

$125,000

$125,000

Now excludes LDPs and MLGs

ARC, PLC, LDP, and MLG 

payments – peanuts $125,000

$125,000 

Now excludes LDPs and MLGs

CRP – annual rental 

payment and incentive 

payment

$50,000 $50,000

ECP – per disaster event $200,000 $500,000

EFRP – per disaster event $500,000 $500,000

ELAP, LFP, and LIP

A single $125,000 limitation 

for ELAP, LFP, and LIP for 

each year 2014 - 2016; a 

single $125,000 limitation for 

ELAP and LFP for each of the 

2017and 2018 years 

• $125,000 for each of the 2019 

and subsequent years for LFP

TAP

500 acres and $125,000 

for the 2014 – 2016 crop 

years and a 1,000 acre per 

year limitation for 2017 and 

subsequent years

• 1,000 acre per year limitation 

for 2017 and subsequent 

years

NAP $125,000

• Basic 50/55 coverage: 

$125,000

• Buy-up coverage: $300,000

• The definition of “family member” that is part of a farming operation has expanded to include first cousin, 

niece, and nephew to the existing list which consists of great grandparent, grandparent, parent, child 

(including legally adopted children and stepchildren), grandchild, great grandchild, sibling of the family 

members in the farming operation, and spouse of family members. This term is used to identify joint 

operations that are comprised entirely of family members, which are not subject to the restriction on the 

number of members that may qualify as actively engaged in farming.

Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) 

• Covered commodities include wheat, oats, barley, corn, grain sorghum, rice, soybeans, sunflower seed, 

rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, dry peas, lentils, small 

chickpeas, large chickpeas, peanuts, and seed cotton.

• Producers must make a one-time irrevocable election between ARC and PLC that applies to 2019 and 

2020. A farm’s election may be changed annually for 2021, 2022, and 2023 crop years. 

• The failure of producers on a farm to make a unanimous election in 2019 will result in the farm not being 
The 2018 Farm Bill – FSA: What Is New and What Has Changed

4 USDA is an equal opportunity provider, employer, and lender.

eligible for 2019 payments. For the 2020-2023 crops, unless they make new elections, they are deemed to 

have made the same election as they did for the 2015-2018 crop years.

• Farms that devoted their entire cropland acres to being planted to grass, or idle or fallow from Jan. 1, 

2009, through Dec. 31, 2017, are ineligible to receive ARC/PLC payments from 2019 through 2023. These 

farms may be eligible for the Grassland Conservation Initiative program administered by NRCS.

• Producers on a farm that have 10 or less base acres are ineligible for ARC/PLC payments on that farm 

except if the producer is a socially disadvantaged, limited resource, or beginning farmer or rancher. 

Another exception to this provision applies if the sum of the base acres on the farm, when combined with 

the base acres of other farms in which the producer has an interest, is more than 10 acres.

•	 County Agriculture Risk Coverage (ARC-CO)

• Payments are issued when the actual county crop revenue of a covered commodity is less than the 

ARC-CO guarantee for the covered commodity. Yields are based on county data, not farm data. 

• The actual or benchmark county yield for a county will be based on RMA yields established for a 

county-wide insurance product, if available.

• Payments will be based on physical location of the farm.

• A separate actual crop revenue and guarantee will be established for irrigated and nonirrigated 

covered commodities.

•	 Individual Agriculture Risk Coverage (ARC-IC)

• Payments are issued when the producer’s actual individual crop revenues, summed across all 

covered commodities planted on the farm, are less than ARC individual guarantees summed across 

those covered commodities on the farm. 

•	 PLC

• For 2019-2023, payments are issued when the effective reference price is greater than the 

applicable effective price for the crop year.

• The effective reference price for a covered commodity for a crop year will be calculated as the 

lesser of: 

• 115 percent of the reference price, or 

• the greater of: 

• the reference price, or 

• 85 percent of the previous five-year Olympic average of the marketing year price.

• Owners can update the farm’s PLC payment yield beginning with the 2020 crop year. The formula to 

update yields is PLC payment is equal to:

• The product obtained, times

• 90 percent of the average yield per planted acre on the farm for the 2013 through 2017 

crop years, excluding any crop year where the crop was not planted (if in any year 

where the crop was planted, the farm’s yield is below 75 percent of the county average, 

use 75 percent of the county average), times

• The national yield for the covered commodity from 2008-2012, divided by

• The national yield for the covered commodity from 2013-2017

• this ratio cannot be less than 90 percent nor greater than 100 percent
The 2018 Farm Bill – FSA: What Is New and What Has Changed

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Commodity Loans 

• The 2018 Farm Bill extends loan authority through 2023 for wheat, corn, grain sorghum, barley, oats, 

upland cotton, extra-long staple (ELS) cotton, long grain rice, medium/short grain rice, soybean, other 

oilseeds (sunflower seed, flaxseed, canola, rapeseed, safflower seed, mustard seed, crambe, and sesame 

seed), dry peas, lentils, small chickpeas, large chickpeas, graded and nongraded wool, mohair, honey, 

peanuts, and sugars (beet and cane).

• LDPs and MLGs are available through 2023 and are no longer subject to payment limitation or payment 

eligibility, including actively engaged in farming.

• Contaminated commodities, which contain mercurial compounds, toxin producing molds, such as 

aflatoxin, other substances poisonous to humans or animals, or any contamination in food commodities, 

are eligible to receive the full loan rate as a recourse loan, which means the commodity may not be 

delivered or forfeited to CCC in satisfaction of the loan indebtedness, and must be repaid in full on or 

before the loan maturity date at principal plus interest only.

• For crop years 2019-2023, loan rates increased for all commodities except oilseeds, wool, mohair, honey, 

and peanuts, and upland cotton.
The 2018 Farm Bill – FSA: What Is New and What Has Changed

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Commodity Loan Rates Per Unit Crop 

Years 2014 through 2018

Loan Rates Per Unit Crop Years 

2019 through 2023

Wheat $2.94/bu. $3.38/bu.

Corn $1.95/bu. $2.20/bu.

Grain Sorghum $1.95/bu. $2.20/bu.

Barley $1.95/bu. $2.50/bu.

Oats $1.39/bu. $2.00/bu.

Upland Cotton

•	 Simple average of the adjusted world 

price (AWP) for the two immediately 

preceding market years

•	 In no case will the loan rate be less 

than $0.45/lb. or more than $0.52/lb.

•	 Simple average of AWP for the two immediately preceding market years

•	 In no case will the loan rate be less than 

$0.45/lb. or more than $0.52/lb.

•	 The loan rate will not equal less than 98 

percent of the loan rate for the base loan 

rate from the preceding year.

ELS Cotton $0.7977/lb. $0.95/lb.

Rice

•	 Long Grain

•	 Medium/Short Grain

$6.50/cwt $7.00/cwt

Soybeans $5.00/bu. $6.20/bu.

Oilseeds

Sunflower (oil and non-oil 

types, Flaxseed, Canola, Rapeseed, Safflower Seed, Mustard 

Seed, Crambe, and Sesame 

Seed

$10.09/cwt $10.09/cwt

Dry Peas $5.40/cwt $6.15/cwt

Lentils $11.28/cwt $13.00/cwt

Small Chickpeas $7.43/cwt $10.00/cwt

Large Chickpeas $11.28/cwt $14.00/cwt

Graded Wool $1.15/lb. $1.15/lb.

Nongraded Wool $0.40/lb. $0.40/lb.

Mohair $4.20/lb. $4.20/lb.

Honey $0.69/lb. $0.69/lb.

Peanuts $355/ton $355/ton

Sugar

•	 Beet Sugar, Refined

•	 Cane Sugar, Raw Value

•	 $0.2409/lb.

•	 $0.1875/lb.

•	 $0.2409/lb.

•	 $0.1975/lb.
The 2018 Farm Bill – FSA: What Is New and What Has Changed

7 USDA is an equal opportunity provider, employer, and lender.

Dairy Programs 

•	 Dairy Margin Coverage Program

• The Dairy Margin Coverage Program (DMC) replaces the Margin Protection Program for dairy 

producers (MPP). 

• Operations may annually elect to receive coverage on a percentage of the operation’s production 

history in five percent increments to not exceed 95 percent. The 25 percent minimum coverage 

percentage no longer applies.

Dairy Margin Coverage: Premium Fees Paid by Producers

Coverage Level

Tier 1 Premium (per cwt)

Covered production history 

less than 5 million pounds

Tier 2 Premium (per cwt)

Covered production history 

greater than 5 million pounds

$4.00 None None

$4.50 $0.0025 $0.0025

$5.00 $0.005 $0.005

$5.50 $0.030 $0.100

$6.00 $0.050 $0.310

$6.50 $0.070 $0.650

$7.00 $0.080 $1.107

$7.50 $0.090 $1.413

$8.00 $0.100 $1.813

$8.50 $0.105 N/A

$9.00 $0.110 N/A

$9.50 $0.150 N/A

• A dairy operation which participated in MPP from 2014-2017 may be eligible to apply for a refund of 

the premiums the operation paid. This is calculated by the total of premiums paid by the operation 

from 2014-2017 minus the amount of indemnity payments made to the operation during the same 

timeframe. For this payment, producers may elect either:

• Option 1: 75 percent of the repayment can be used toward a credit used for 2019 dairy 

margin coverage, or

• Option 2: 50 percent of the repayment taken as a direct cash repayment.

• Producers who participated in the 2018 LGM program and were ineligible to enroll in 2018 MPP are 

eligible to enroll in 2018 MPP. Payments will be made retroactively. 

•	 Milk Donation Program

• Dairy farmers, cooperatives, and processors may donate milk to eligible organizations which provide 

nutrition assistance to individuals in low-income groups.

• Producers are eligible for reimbursement of qualified expenses. 

•	 Dairy Indemnity Payment Program (DIPP)

• DIPP, which provides payments to dairy producers when a public regulatory agency directs them to 

remove their milk from the commercial market because it has been contaminated by pesticides and 

other residues, has been reauthorized till 2023.
The 2018 Farm Bill – FSA: What Is New and What Has Changed

8 USDA is an equal opportunity provider, employer, and lender.

Conservation

• The 2018 Farm Bill reauthorizes the Conservation Reserve Program (CRP), including the Conservation 

Reserve Enhancement Program (CREP) and the Farmable Wetlands Program (FWP), and authorizes two 

new CRP pilot programs, CLEAR 30 devoted to the Clean Lakes, Estuaries, and Rivers (CLEAR) priority of 

the 2018 Farm Bill and the Soil Health and Income Protection Pilot Program (SHIPP).

•	 CRP

• CRP participants establish and maintain valuable land cover to help improve water quality, prevent 

soil erosion, and reduce loss of wildlife habitat on cropland under 10-15-year contracts (with the 

opportunity to re-enroll). FSA provides participants with rental and incentive payments and cost-share 

assistance.

• By 2023 the acreage limit for CRP is 27 million, with at least 8.6 million acres devoted to continuous 

practices and two million acres for grassland practices. This includes a target of at least 40 percent 

of continuous CRP acres to water quality practices that are considered part of the CLEAR (Clean 

Lakes, Estuaries, and Rivers) Initiative. 

Payment type Conditions

Annual rental payments

The annual rental payment is limited to a percentage of the estimated average 

county rental rate:

• General Enrollment: 85 percent

• Continuous Enrollment: 90 percent

Cost-Share Payments • Pays 50 percent of the cost of establishing practices

• Limited to 50 percent of the actual cost of seed.

Practice Incentive

Payments (PIP)

For new continuous enrollment, an incentive payment is required of no more 

than 50 percent of the actual cost of establishing all measures and practices, 

including seed costs related to the establishment of cover.

Signing Incentive

Payments (SIP)

For new continuous enrollment, an incentive payment is required at time of 

enrollment equal to 32.5 percent of the amount of the 1st year annual rental 

payment.

Note: CREP payments may vary.

• Other additions to CRP include expanded opportunities for haying, grazing, and other management 

tools, cost-share for fencing and other water distribution practices, and the opportunity for land that 

was under a 15-year CRP contract that expired in 2017 or 2018 to reenroll. 

•	 Pilot Programs

•	 CLEAR 30

• CRP participants with contracts that expire on or after Dec. 20, 2018, may choose to 

enroll their land in CLEAR 30. This program prioritizes practices that help benefit water 

resources, such as grass sod waterways, contour grass sod strips, prairie strips, filter 

strips, riparian buffers, wetland or wetland buffers, saturated buffers, or other similar 

water quality practices. Contracts under CLEAR 30 are enrolled for 30 years.

• Participants will receive 30 annual payments equal to what they would have received 

under continuous CRP.
The 2018 Farm Bill – FSA: What Is New and What Has Changed

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•	 SHIPP

• Eligible land must be located in the prairie pothole region and have a cropping history, 

have been planted in the three previous years before enrollment, and be less-productive 

than other land on the farm. 

• Land that was in CRP during these three previous years is not eligible. Subject to 

certain conditions, harvesting for seed, haying, and grazing outside the primary nesting 

season is allowed. 

• No more than 15 percent of eligible land per farm may enroll.

• Contracts are from 3-5 years.

• Annual rental payments:

• 50 percent of the average county rental rate for the applicable county, and

• 75 percent of the average county rental rate for the applicable county for beginning, 

limited resource, socially disadvantaged, or veteran farmers.

• There is no cost-share for practice establishment except for beginning, limited resource, 

socially disadvantaged, or veteran farmers.

• Enrollment ends on Dec. 31, 2020.

Emergency Conservation Program (ECP)

• ECP provides emergency cost-share assistance to farmers and ranchers to help rehabilitate farmland 

and ranchland damaged by natural disasters. In general, producers receive up to 75 percent cost-share 

for installing practices to restore land to a condition similar to that existing prior to the natural disaster. 

Limited resource producers have historically been allowed to receive up to 90 percent cost-share, and the 

2018 Farm Bill expands that opportunity to socially disadvantaged and beginning farmers and ranchers.

• A 25 percent advance payment will be allowed for repair or replacement of fencing.

• Previously, participants were limited to a $200,000 payment limit for ECP. The 2018 Farm Bill increases 

the ECP payment limitation to $500,000 per disaster. 

Biomass Crop Assistance Program (BCAP)

• BCAP provides incentives to farmers, ranchers, and forest landowners to establish, cultivate, and harvest 

eligible biomass for heat, power, bio-based products, research, and advanced biofuels. The 2018 Farm 

Bill eliminates the mandatory funding provision and adds algae as an eligible biomass material.

Noninsured Crop Disaster Program (NAP)

• NAP provides financial assistance to producers of crops that are not eligible for crop insurance to protect 

against lower yields or crops unable to be planted due to natural disasters.

• NAP provides basic coverage equivalent to the catastrophic level risk protection plan of insurance coverage. This is based on the amount of prevented planting in excess of 35 percent of intended acreage at 55 

percent of the average market price, or loss of yield or value in excess of 50 percent of expected production or value at 55 percent of the average market price (or other determined prices) for the crop. 

• NAP also offers higher levels of coverage (buy-up) ranging from 50 to 65 percent of production, in five 

percent increments, or the same prevented planted coverage level of more than 35 percent of intended 

acreage at 100 percent of the average market price. Buy-up coverage is now permanently authorized 

under the program and does not expire in 2023.
The 2018 Farm Bill – FSA: What Is New and What Has Changed

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• Coverage, payment limitations, and service fees for NAP have all changed with the 2018 Farm Bill.

• Producers who elect higher levels of coverage must also pay a premium equal to:

• The producer’s share of the crop, times

• The number of eligible acres devoted to the crop, times

• The approved yield per acre, times

• The coverage level, times

• The average market price, times

• Note: Producers may now elect to use the contract price or other prices such as local, organic, or 

direct market price instead of the average market price.

• A 5.25 percent premium fee.

• The payment limitation per producer and legal entity has increased to $300,000 for buy-up coverage; 

it remains at $125,000 for basic coverage.

• Service fees have increased to $325 per crop per county, and to $825 per producer per county, not to 

exceed $1,950 per producer.

Disaster Programs

•	 Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish (ELAP)

• ELAP provides emergency assistance to eligible producers of livestock, honeybees, and farm-raised 

fish for losses due to disease (including cattle tick fever), adverse weather, or other conditions, such 

as blizzards and wildfires that are not covered by LFP and LIP. In addition to covering the cost related 

to gathering livestock to treat for cattle tick fever, ELAP will now cover the cost related to gathering 

livestock to inspect for cattle tick fever.

•	 Livestock Indemnity Program (LIP)

• LIP provides benefits to livestock producers for livestock deaths or injuries in excess of normal 

mortality caused by adverse weather or attacks by animals that have been reintroduced into the wild 

by the federal government. “Cold” is now considered a covered eligible loss for unweaned livestock 

without regard to any management practice, vaccination protocol, or lack of vaccination. 

• LIP now covers diseases that are caused or transmitted by a vector and are not controlled by 

vaccination or an acceptable management practice. These diseases were previously covered under 

ELAP.

•	 Tree Assistance Program (TAP)

• TAP provides financial assistance to eligible orchardists and nursery tree growers to replant or rehabilitate eligible trees, bushes, and vines lost by natural disasters.

• For beginning or veteran farmers or ranchers, the reimbursement costs for TAP increased from 65 

percent to 75 percent for replanting lost trees, bushes, and vines; and from 50 percent to 75 percent 

for the cost of pruning, removal, and other costs incurred for salvaging existing trees, bushes, and 

vines.

•	 Organic Cost-Share Certification Program (OCCSP)

• OCCSP has funding for each fiscal year through FY 2023, which will remain available until expended.
The 2018 Farm Bill – FSA: What Is New and What Has Changed

11 USDA is an equal opportunity provider, employer, and lender.

Farm Loan Program 

•	 Direct Farm Ownership Experience 

• The 2018 Farm Bill modifies the existing three-year experience requirement for Direct Farm 

Ownership loans by including the following as experience:

• 16 hours of post-secondary education in an agriculture-related field

• Successful completion of a farm management curriculum offered by a cooperative 

extension service, community college, adult vocational agriculture program, non-profit 

organization, or land-grant college or university. 

• One-year experience as a farm laborer with substantial management responsibility

• Successful completion of an internship, mentorship, or apprenticeship in day-to-day 

farm management

• Significant business management experience

• Honorable discharge from the armed forces

• Successful repayment of a youth loan

• Established relationship with a counselor in the Service Corps of Retired Executives 

(SCORE) program who has experience in farming or ranching

•	 Limit Increases

• Direct Farm Ownership loan limit increases from $300,000 to $600,000 and increases the Guaranteed 

Farm Ownership loan limit from $1,429,000 to $1,750,000. The Guaranteed loan limit continues to be 

adjusted annually based on inflation.

• The Direct Operating loan limit increases from $300,000 to $400,000 and increases the Guaranteed 

Operating loan limit from $1,429,000 to $1,750,000. The Guaranteed loan limit continues to be adjusted annually based on inflation.

• The 2018 Farm Bill increases access to credit under the microloan program. Previously, Microloans 

were limited to a total of $50,000 for both Farm Ownership and Operating Microloans. The 2018 Farm 

Bill now applies this limit separately. A farmer or rancher may receive both a $50,000 Farm Ownership Microloan and a $50,000 Operating Microloan.

• With the passage of the 2018 Farm Bill, equitable relief may be granted on direct farm ownership, 

operating, or emergency loans to certain farmers or ranchers who failed to comply with the terms of the 

loan due to an action of, or the advice of, an FSA employee.

• All socially disadvantaged and beginning farmers will receive a guarantee equal to 95 percent, rather than 

the typical 90 percent guarantee. 

• The 2018 Farm Bill makes borrowers who have received a debt write down or restructuring of a farm loan 

eligible for an Emergency Loan.

• The scope of eligible issues covered under the USDA Agricultural Mediation Program has expanded. 

• New issues to be covered include:

• The National Organic Program

• Lease issues

• Family farm transition

• Farmer-neighbor disputes

• Additionally, use of mediation grant funds is expanded to include providing credit counseling.

• Pending decisions by the Secretary, FSA has authority to implement a relending program to resolve 

ownership and succession on farmland with multiple owners.