Record farm payouts come as subsidies projected to top 30% of net farm income
The U.S. Department of Agriculture announced a record near $14 billion payout through two farmer safety net programs – not the first time the Trump administration has announced record amounts of taxpayer funding to America’s farmers.
In fact, 2026 is on track to be a record year for federal farm assistance, according to former chief USDA economist Joseph Glauber, likely topping $50 billion, which averages out to be more than 30% of the total estimated net farm income for the year.
“This has been an extraordinary year,” Glauber told The Center Square, as federal farm assistance typically amounts to around 10%-12% of net farm income.
“I suspect you’ll see where some people are getting double payment or you know payments through multiple programs… and yet there are probably other sectors, other farms and types of farms that are probably not well-covered. But in general, again, it’s almost 30% and regardless of how equitable, if you will, the payments are,” Glauber said.
He later added that if programs like crop insurance were included, which is heavily subsidized, it would amount to more than 30%.
In September’s farm income forecast, the USDA explained how 2026 farm assistance breaks down, with the largest portion coming from supplemental and ad hoc disaster assistance payments, which are forecast at $26.5 billion.
Federal payments to farmers under Farm Bill programs tied to commodity prices and revenues are projected to increase more than sevenfold, from $2.2 billion in 2025 to $15.6 billion in 2026, according to USDA’s September farm income forecast.
The 2026 forecast is composed almost entirely of the $13.8 billion announced Wednesday, which is due to expansions of the 2025 crop year Agriculture Risk Coverage and Price Loss Coverage programs authorized by the Working Families Tax Cuts Act. The law raised reference prices used to calculate ARC and PLC payments to “better reflect today’s farm economy,” according to Agriculture Secretary Brooke Rollins. It also increased the annual payment limit from $125,000 to $155,000, with adjustments for inflation bringing the 2025 crop year’s limit to $160,000. In addition, for the 2025 crop year only, farmers will automatically receive payments under whichever of the two programs offers the higher amount, regardless of which they previously selected.
USDA forecasts federal conservation payments to farmers will reach $5.3 billion in 2026.
Those numbers total $47.4 billion and do not include crop insurance or USDA loans.
While Rollins called President Donald Trump “the biggest champion for American farmers,” Glauber warned that the surge in taxpayer-funded assistance could have unintended consequences, like driving up farmland values and rental costs, potentially diminishing their benefits for farmers who lease their land.
The federal government has long supported farmers through agricultural assistance programs, but supplemental aid expanded significantly beginning in 2018, when the Trump administration began providing billions in additional payments to farmers affected by retaliatory tariffs.
“Agriculture is a real volatile business,” Glauber said. “Congress has decided that we need some programs for agriculture. The question is… how sustainable is this? “
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