One Big Beautiful Bill Now Pays Farmers for Unborn Animals
Published Date: 7/9/2026
Rule
Summary
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.
Analyzed Economic Effects
12 provisions identified: 8 benefits, 2 costs, 2 mixed.
Fish farms: $600/acre bird losses
If you raise freshwater farm-raised fish, ELAP now covers losses from bird depredation. For program year 2026 CCC set the payment rate at $600 per eligible acre, and payment is calculated as $600 multiplied by 85 percent of the acres you had in production that year. To get a payment you must timely file an acreage report, submit a notice of loss and other documents (including a U.S. Fish and Wildlife depredation permit) by March 1 following the program year.
Drought aid: lower eligibility threshold
For the Livestock Forage Disaster Program (LFP), the qualifying drought threshold is lowered for program year 2026 and subsequent years: producers now become eligible after four consecutive weeks of severe drought (D2) for a one-month payment. If D2 continues for 7 out of 8 consecutive weeks during the normal grazing period, a two-month payment is available.
LIP pays for unborn livestock losses
LIP now compensates eligible unborn livestock death losses that occurred on or after January 1, 2024. Payments for unborn losses are calculated using a birthing factor and are paid up to 85 percent of the payment rate for the lowest non-adult weight class (with species-specific birthing factors incorporated). For program year 2026 and later CCC also updated livestock categories and forms to collect bred-female death information to determine payments.
Predation losses paid at 100% market value
Starting with the 2026 program year, Livestock Indemnity Program (LIP) payments for eligible livestock deaths due to predation will be paid at 100 percent of the market value as determined by CCC. Previously such predation losses were compensated at 75 percent of market value.
TAP: lower threshold and bigger salvage pay
The Tree Assistance Program (TAP) eligibility threshold is lowered so a producer qualifies if losses exceed normal mortality; the 15 percent statutory threshold is removed. Reimbursement for pruning, removal, and salvage costs increases from 50 percent to 65 percent, while replanting reimbursement remains 65 percent. Beginning and veteran farmers and ranchers remain eligible for an increased reimbursement of 75 percent, and participants now have 24 months (up from 12) to complete practices, with up to 36 months possible for delays beyond their control.
Beekeepers: 15% normal mortality set
For ELAP, the normal honeybee colony mortality rate is set at 15 percent for program year 2026 and subsequent years. That 15 percent rate is used to determine the portion of colony losses eligible for payment under the program.
Transportation and feed payment limits clarified
ELAP now defines terms used for transportation assistance (including 'truckload' and 'miles above normal') and clarifies what transport costs qualify; commercial shippers such as USPS, FedEx, and UPS are excluded from ELAP trucking-rate payments. The rule also specifies livestock feed payments will be calculated for no more than 150 grazing days in the program year and sets a deadline for requested supporting documentation (the later of March 1 after the program year or 60 days after the request).
Producers can use local market prices (up to 145%)
Beginning with program year 2026, LIP payment calculations may use the producer's verifiable alternative market price for the same kind/type/weight class, subject to CCC approval and not to exceed 145 percent of the higher national average market values. For weather/disease losses rates are multiplied by 75 percent and for predation by 100 percent. The CCC-852 and any alternative price documentation must be submitted by March 1 following the calendar year of the loss.
Higher MAL and LDP loan rates through 2031
Section 10309 of OBBBA increases Marketing Assistance Loan (MAL) and Loan Deficiency Payment (LDP) loan rates for all eligible commodities for the 2026 through 2031 crop years. Producers of eligible commodities will receive the increased loan rates as specified by OBBBA for those crop years.
Cotton loan rules and 30-day review window
For upland and extra-long staple (ELS) cotton, the rule revises formulas for calculating the prevailing world market price, introduces a prevailing world market price and adjusted world price for ELS cotton, and changes how cotton storage costs are paid by area. The rule also adds a 30-day post-repayment loan review in which a refund for upland cotton repayment or an additional LDP disbursement could occur.
Sugar program: loan, storage, allocation updates
The rule makes changes to the Sugar Program related to effective loan rates, storage rates, and sugar marketing allocation provisions, and also includes minor administrative updates to the Sugar Program regulations. These adjustments apply as described in the final rule and align the program with OBBBA directions.
Feedstock Flexibility Program ends in 2026
The rule updates the Feedstock Flexibility Program (FFP) provisions to indicate that 2026 is the final crop year covered by the program. This change clarifies that FFP participation and related provisions apply through the 2026 crop year only.
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