Farmers Get New Rules Courtesy of One Big Beautiful Bill
Published Date: 6/2/2026
Rule
Summary
Starting June 2, 2026, new rules change how farm payments are limited and who can get them, thanks to the One Big Beautiful Bill Act. These updates affect farmers and farming groups by making payment limits fairer, adding exceptions for income rules, and boosting some program payment caps. The changes also improve how the programs run, so farmers get clearer, smoother support.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Pass‑through Farms get Larger Payment Caps
Starting with program year 2026, S corporations, many LLCs, partnerships, and joint ventures are treated as “qualified pass‑through entities” so the program payment limit is multiplied by the number of non‑pass‑through owners. For example, a $125,000 program payment limit for a program would become $250,000 for an S corporation with two individual owners. The rule is effective June 2, 2026, and ownership for 2026 is determined as of September 15, 2026.
Salaries Count Toward Eligibility
For program year 2026 and later, members of qualified pass‑through entities (for example, LLCs or S corporations) may include compensated labor or management (such as salaries or guaranteed payments) when meeting the "actively engaged in farming" payment eligibility tests. This aligns treatment across entity types.
High‑AGI Producers: AGI Cap Waived for Certain Programs
Beginning with program year 2026, the $900,000 average AGI limitation is waived for certain program payments (ELAP, LFP, LIP, TAP, NAP, CRP received on/after October 1, 2024, and NRCS conservation programs received on/after October 1, 2024) if the participant certifies that 75 percent or more of their average gross income came from farming, ranching, or silviculture and provides verification signed by a CPA, attorney, or authorized enrolled agent. The rule is effective June 2, 2026.
Entity‑level AGI Certification Removed
Beginning with program year 2026, qualified pass‑through entities are not required to certify compliance with the $900,000 average adjusted gross income (AGI) limitation at the entity level; instead, individual members (through the fourth level of ownership) must provide the required certifications. The rule is effective June 2, 2026.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-04531 — Supplemental Disaster Relief Program and Dairy Margin Coverage Program; Correction
The USDA fixed some important rules for farmers in the Supplemental Disaster Relief Program and the Dairy Margin Coverage Program. These changes help sugar beet growers and certain crop insurance holders get the right disaster payments, and clarify who dairy farmers can qualify if they stopped milk production. The updates take effect March 9, 2026, making sure payments and eligibility are fair and clear.
2026-13878 — Supplemental Disaster Assistance Programs, Marketing Assistance Loans, and Sugar Provisions
Farmers and ranchers get some fresh updates to disaster help and loan programs thanks to the new One Big Beautiful Bill Act! This means better support for losses from birds, drought, and even unborn animals, plus higher loan rates for crops through 2031. Cotton growers and sugar producers also see new rules that could boost their payments and loan reviews starting now.
2026-13571 — Organic Certification Cost Share Program (OCCSP)
The Organic Certification Cost Share Program (OCCSP) helps organic farmers and handlers save money on certification fees from 2025 through 2031. This new rule sets clear rules for who can apply, how payments are calculated, and when to apply—usually by December 31 after the program year ends. If you’re an organic producer or handler, get ready to apply through your local FSA office or a State agency and save some cash!
2026-11748 — Assistance for Specialty Crop Farmers (ASCF) Program; Approval of Information Collection Request
The USDA just got the green light to collect info for the Assistance for Specialty Crop Farmers (ASCF) Program, helping specialty crop farmers get payments smoothly. Farmers who reported their planted acres by April 24, 2026, will see their applications pre-filled, making the process easier and faster. This approval lasts until October 31, 2027, so farmers can expect steady support and clear deadlines ahead.
2026-11227 — Office of The Secretary; Privacy Act of 1974; System of Records
The USDA is updating its Farm Records system to include new info about foreign agricultural investments and more people involved. This change affects farmers and others connected to farm programs and adds new ways the USDA can use the data. You’ve got until July 6, 2026, to share your thoughts before the updates go live—no extra costs involved, just clearer rules!
2026-10930 — Assistance for Specialty Crop Farmers (ASCF) Program
Starting June 1, 2026, the USDA is rolling out one-time payments to help specialty crop farmers cover higher costs and fight unfair trade practices from foreign competitors. This $1.625 billion boost supports farmers growing fruits, veggies, nuts, and more, making sure they stay strong in the market. If you grow specialty crops, get ready to apply and grab your share of the help!
Previous / Next Documents
Previous: 2026-10996 — Inflation Adjustment of Civil Monetary Penalties
The Federal Maritime Commission won’t raise civil penalty amounts in 2026 because the usual inflation data wasn’t available. This means businesses and individuals under FMC rules will see the same penalty limits as in 2025. The rule kicks in on June 2, 2026, keeping things steady for now.
Next: 2026-11003 — New Mailing Standards for Domestic Mailing Services Products
Starting July 12, 2026, the USPS is shaking up mailing rules and prices for First-Class Mail, Marketing Mail, and Periodicals. They’re ditching some old rate categories, simplifying pricing, and letting heavier Marketing Mail pieces fly up to 20-24 ounces. If you send mail, expect new prices and easier rules that could save you time and maybe some money!