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

Farm Service Agency

What’s New: FSA and the 2018 Farm Bill

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

• Producers may make a new election to obtain either ARC or PLC for the 2019 crop year, which also will 

apply for the 2020 crop year.

• Producers may change elections annually during the 2021 through 2023 crop years.

• Producers on farms where the cropland was planted to grass or pasture (including cropland that was idle or 

fallow) from January 1, 2009, through December 31, 2017, are ineligible for ARC/PLC payments from 2019 

through 2023.

• Owners can update the farm's PLC payment yield beginning with the 2020 crop year. 

Dairy Margin Coverage (DMC) Program

• Replaces the Margin Protection Program for Dairy (MPP).

• Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent 

discount on the existing margin coverage rates.

• The maximum level for operations with covered production history less than five million pounds is increased to 

$9.50.

• A dairy operation enrolled in MPP any year from 2014-2017 may be eligible to receive a refund of premiums if 

the premium paid exceeds the MPP payments received.

• Producers who enrolled in the Livestock Gross Margin for Dairy Cattle program (LGM) in 2018 may enroll in 

2018 MPP retroactively.

Conservation Reserve Program (CRP) 

• The CRP acreage cap gradually increases to 27 million acres by 2023.

• At least 8.6 million acres devoted to continuous practices and 2 million acres to grassland.

• Two pilot programs are authorized: Clean Lakes, Estuaries, and Rivers Initiative (CLEAR 30) and the Soil 

Health and Income Protection Pilot Program (SHIPP).

• The annual rental payment is limited to 85% of the estimated average county rental sale for general 

enrollment and 90% of the estimated county rental rate for continuous enrollment. 

Marketing Assistance Loan Programs (Commodity Loans)

• Extends loan authority through 2023 for wheat, corn, grain sorghum, barley, oats, upland cotton, extra-long 

staple (ELS) cotton, rice, soybean, other oilseeds, dry peas, lentils, chickpeas, graded and nongraded wool, 

mohair, honey, peanuts, and sugars (beet and cane).

• 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.

• Loan rates increased for all commodities except minor oilseeds, wool, mohair, honey, peanuts, and upland 

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

www.fsa.usda.gov 2 USDA is an equal opportunity provider, employer, and lender.

Noninsured Crop Disaster Assistance Program (NAP)

• Buy-up NAP coverage 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.

Farm Loan Programs 

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

Operating Microloan. No longer limited to a combined total of $50,000 for both microloans.

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

increases to $1,750,000.

• The Direct Farm Ownership Loan 3-year-experience requirement includes more allowable

experiences to qualify.

• The Direct Farm Ownership Loan limit increases to $600,000,and the Guaranteed Farm Ownership

loan limit increases to $1,750,000.

• 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.

• Socially disadvantaged and beginning farmers will receive a guarantee equal to 95 percent, up

from 90 percent.

• Allows borrowers who have received a debt write down or restructuring of a farm loan to be

eligible for an Emergency Loan.

Disaster Programs

• 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.

• “Cold” is now considered a LIP 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.

• ELAP payments are no longer subject to payment limitation.

• 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. 

Other Farm Bill Changes

• The definition of “family member” for farming operation has expanded to include first cousin,

niece, and nephew; (great-grandparent or grandparent, parent, child [including legally adopted

children and stepchildren] grandchild, great grandchild, sibling of the family members in the

farming operation, and spouses 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.