During the summer of 2025, Congress passed a bill titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14,” commonly referred to as the One Big Beautiful Bill (OBBBA). OBBBA has drawn both praise and criticism from various reviewers. One notable change will positively impact farms operating as business entities and the payment limits set by the Farm Service Agency (FSA).
Previously, if your farm operated as a business entity—such as an LLC or an S Corporation—the FSA treated the entity as a single “person,” capping payments like Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC) at $125,000, regardless of the number of owners or shareholders.
Under the new rules, which generally apply to the 2025 crop year (payments issued after October 1, 2026), members of qualified pass-through entities (LLCs, corporations, and partnerships) are eligible for separate payment limits, provided each individual meets the “actively engaged in farming” requirement.
Example:
The Johnson family has four members actively involved in their farming operation. They previously farmed as a general partnership—sharing equipment, labor, and profits, but without liability protection for personal assets. Under the old rules, this allowed them to receive multiple FSA payments.
With the changes introduced by OBBBA, the Johnsons could form an LLC, gaining liability protection in case of accidents or business debt while continuing to share farm profits. Under the new rules, each family member who meets the “actively engaged in farming” requirement will qualify for a separate FSA payment limit.
An important distinction: anyone claiming a separate FSA payment limit must provide labor or management and capital contributions proportional to their ownership share. FSA enforces this through detailed documentation of ownership attribution and farm business records, retaining authority to audit and verify genuine farming activity.
Finally, note that this topic is different from the Farmer Bridge Assistance Program, which has been in the news recently. For more details on that program, visit the USDA website.