Title I Commodities: ARC, PLC, Reference Prices in Farm Bill 2.0

TL;DR: Title I of H.R. 7567, the Farm, Food, and National Security Act of 2026, raises statutory reference prices for major commodities, preserves both the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) safety-net programs, and updates marketing loan rates for the first time since the 2014 Farm Bill. These changes affect millions of acres of corn, soybeans, wheat, cotton, rice, and other covered commodities across the United States.

Key takeaway

H.R. 7567 raises reference prices and marketing loan rates for covered commodities, giving farmers larger automatic payments when market prices fall below new, higher statutory floors.

What happened

Title I of H.R. 7567 was advanced by the House Agriculture Committee and reauthorizes the core commodity support programs that expired with the 2018 Farm Bill (Public Law 115-334) after multiple short-term extensions. The title covers crops grown under what policymakers call the "covered commodity" framework, which includes corn, soybeans, upland cotton, long- and medium-grain rice, wheat, grain sorghum, barley, oats, peanuts, and several others.

The central change in the 2026 bill is a broad increase in statutory reference prices, the per-bushel (or per-pound) price floor that triggers PLC payments. For corn, the reference price moves from $3.70 per bushel (set in 2014) to a higher level specified in Sec. 1101. For soybeans, the reference price rises from $8.40 per bushel. Exact enacted figures for each commodity are drawn from the bill text and are listed in the full bill summary.

Marketing loan rates, which set the floor for commodity credit loans through the USDA Farm Service Agency (FSA), are also updated in Sec. 1201. These rates had remained largely frozen at 2014 levels through the 2018 Farm Bill's extensions. The 2026 bill ties future adjustments to a formula indexed to the cost of production, a structure that differs from prior farm bills.

Compared to the 2018 Farm Bill, the ARC county-level option (ARC-CO) retains its benchmark revenue calculation but uses updated Olympic averages that reflect more recent market years, effectively raising the revenue guarantee for many producers. See what changed versus the 2018 Farm Bill for a side-by-side look at every Title I modification.

What it means

For commodity producers, higher reference prices directly widen the band of market conditions under which PLC payments are triggered. A corn farmer enrolled in PLC now receives a payment any crop year in which the national average market year price falls below the new statutory floor, multiplied by their payment acres (85 percent of base acres) and their farm's program yield.

ARC-CO participants benefit from updated benchmark calculations. Because the Olympic average (which drops the highest and lowest years in a five-year window) will now draw from more recent, often higher price years, the revenue benchmark rises in many cases. When actual county revenue falls below 86 percent of that benchmark, ARC-CO payments trigger.

Key program mechanics that carry over from 2018:

• Producers may elect ARC-CO or PLC on a crop-by-crop, farm-by-farm basis during the enrollment window.
• ARC-IC (individual coverage) remains available as a third option, most used by diversified operations.
• Payment limitations remain in place; the per-person, per-entity payment cap and Adjusted Gross Income (AGI) limits are addressed in Sec. 1601. Specific cap levels should be confirmed against the enrolled bill text.
• Base acres and program yields from prior elections carry forward; no reallocation is authorized in H.R. 7567 as introduced.

Marketing loan updates mean producers who forfeit a commodity to USDA as loan collateral, or who use loan deficiency payments (LDPs), do so against a higher posted county price floor. This provides more downside protection in sharp market dislocations, such as the price drops seen in 2019 and 2023.

Seed cotton and upland cotton producers should note that seed cotton base acres, created under the 2018 Farm Bill, remain in place. The lint cotton marketing loan rate adjustment is a separate line item in Sec. 1202 and is distinct from the ELS (extra-long staple) cotton provisions.

Lenders who use USDA commodity loans as collateral for operating lines of credit will see the loan rate changes affect the "floor value" they can assign to stored grain. Ag lenders should review the funding breakdown for baseline spending projections tied to these new rates.

What's next

As of May 2026, H.R. 7567 has passed the House and awaits Senate action. The Senate Agriculture Committee is expected to mark up its own version, which may differ on reference price levels and payment limits. See the Senate status page for current developments.

Producers who want to act on Title I changes should watch for USDA FSA enrollment announcements. FSA typically opens ARC/PLC enrollment windows after a farm bill is enacted; the exact dates for the 2026 crop year elections are to be confirmed following enactment.

If the Senate amends Title I provisions, a conference committee would reconcile differences before the bill goes to the President. Reference prices and payment limits are historically among the most contested conference items.

Frequently asked questions

What are reference prices in the Farm Bill and why do they matter?

Reference prices are the statutory per-unit price floors set by Congress for covered commodities such as corn, soybeans, and wheat. When the national average market year price for a crop falls below its reference price, farmers enrolled in Price Loss Coverage (PLC) receive a payment equal to the difference multiplied by their payment acres and program yield. Higher reference prices mean payments trigger more often and in more market conditions.

How does H.R. 7567 change PLC payments compared to the 2018 Farm Bill?

H.R. 7567 raises the statutory reference prices that PLC uses as its trigger. Because the old reference prices were set in the 2014 Farm Bill and never updated for inflation or production cost increases, many commodity prices had traded above them for years with no PLC payments triggered. The new, higher floors in the 2026 bill are designed to provide meaningful support in a wider range of market downturns.

What is the difference between ARC-CO and PLC, and which should I choose?

ARC-CO (Agriculture Risk Coverage, county option) pays when actual county revenue falls below 86 percent of a benchmark based on recent average prices and yields. PLC pays when the national market year price falls below a fixed reference price. ARC-CO tends to perform better in localized yield disasters even when prices are relatively high, while PLC tends to outperform in broad price-decline years. The right choice depends on your farm's yield history, your county's risk profile, and your view of price direction. Consult your FSA office or a farm management adviser before the enrollment deadline.

What are marketing loans and how do the 2026 changes affect them?

Marketing loans are nine-month commodity credit loans from USDA FSA that let producers store crops after harvest and repay the loan when prices improve, or forfeit the commodity if prices stay low. The loan rate sets the effective floor per bushel or pound. H.R. 7567 raises these rates for major commodities in Sec. 1201, meaning producers can borrow more against stored grain and receive higher loan deficiency payments when local prices fall below the county posted price.

Can I still switch between ARC and PLC under the new farm bill?

H.R. 7567 preserves the election framework from prior farm bills. Producers may elect ARC-CO, ARC-IC, or PLC on a crop-by-crop basis during the enrollment window that FSA will announce after enactment. Elections made in the prior farm bill do not carry over automatically; producers must actively re-enroll. Missing the enrollment window defaults the farm to the prior election or to a statutory default, depending on FSA rules finalized after enactment.

Do the Title I changes affect cotton and peanut farmers the same way?

Upland cotton and peanut producers are both covered commodity producers under Title I and benefit from reference price and marketing loan rate adjustments. However, peanut reference prices are set on a per-ton basis and are addressed separately in Sec. 1101(b). Upland cotton uses a seed cotton framework for ARC and PLC eligibility, while the lint cotton marketing loan rate is a distinct provision in Sec. 1202. ELS cotton has its own loan rate line. Producers should review the specific subsections that apply to their commodity.

Sources

• House Agriculture Committee , H.R. 7567 bill text and section-by-section summary, 2026.
• USDA Farm Service Agency , ARC and PLC program enrollment guidance and loan rate schedules.
• Congressional Budget Office , Baseline and score for Title I commodity programs under H.R. 7567, 2026.