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

TL;DR: Title I of H.R. 7567 sets the core commodity safety net for crops like corn, soybeans, wheat, cotton, rice, and peanuts. It raises statutory reference prices above 2018 levels, updates the Agriculture Risk Coverage (ARC) revenue benchmarks, and increases marketing loan rates. Producers still choose between Price Loss Coverage (PLC) and ARC each year. Exact figures are to be confirmed from final text.

Key takeaway

Title I of H.R. 7567 raises reference prices, ARC benchmarks, and marketing loan rates above 2018 levels while keeping the annual PLC-versus-ARC choice for producers.

What this section does

Title I governs the commodity support programs that provide income protection to producers of covered commodities, including corn, soybeans, wheat, cotton, rice, and peanuts. It sets statutory reference prices, updates the ARC revenue program, and establishes marketing loan rates that create a price floor.

The two main programs work differently. Price Loss Coverage (PLC) pays producers the difference between the statutory reference price and the higher of the national average market price or the national loan rate, multiplied by payment acres (85 percent of base acres) and the payment yield. Agriculture Risk Coverage (ARC) pays when county or farm revenue falls below a benchmark built from an Olympic average of past revenues, which drops the high and low years.

Producers keep the ability to elect between PLC and ARC-County (ARC-CO), or the whole-farm ARC-Individual (ARC-IC) option, on a commodity-by-commodity basis each year. That flexibility carries forward from the 2018 Farm Bill. The bill continues the two-program election structure first established in 2014. For the wider bill context, see our full bill summary.

Marketing loan rates set a floor that determines loan deficiency payments when market prices fall. Payment limitation and adjusted gross income (AGI) eligibility rules are also addressed within Title I, with the 2018 structure serving as the baseline.

What it means

The headline change is that reference prices are raised above their 2018 levels, which had themselves been largely unchanged from 2014 for most commodities. Higher reference prices were a top priority for corn, wheat, and peanut producer groups responding to higher input costs. A detailed comparison is on our what's new vs 2018 page.

Here is who is affected:

• Covered commodity producers: Farms with established base acres are directly eligible for PLC and ARC payments when prices or revenues fall below benchmarks. Roughly one million farm operations historically participate.
• Agricultural lenders and farm credit institutions: Loan rates and payment certainty influence how operating loans are underwritten, so changes indirectly affect credit decisions.
• Taxpayers and the federal budget: Commodity title spending is among the largest drivers of farm bill cost. Higher reference prices increase the projected baseline cost, though CBO scores for Title I are to be confirmed.

One important caveat: if market prices stay elevated, PLC triggers may not fire even at higher reference prices. In that case the increases mainly raise the safety net threshold rather than producing immediate payments. You can track how Title I fits into total costs on our funding breakdown page.

What's next

As of July 2026, H.R. 7567 has passed committee, but Senate floor action and conference dynamics remain in process. The specific reference price levels, marketing loan rates, and ARC averaging period must all be confirmed from final enrolled text.

The 2018 bill included an "Effective Reference Price" escalator that let prices rise with market conditions up to 115 percent of the statutory reference price. H.R. 7567 proposals involve modifying or raising that ceiling, with details to be confirmed. Any change to the ARC county revenue averaging period, which used a five-year Olympic average under the 2018 bill, would affect payment timing and predictability.

After enactment, USDA's Farm Service Agency (FSA) will need rulemaking and systems updates to administer new price levels. Implementation lag between enactment and the first crop year payments is a recurring risk. Payment limitation and AGI threshold provisions may also face amendment pressure during Senate floor debate, as they have in every farm bill cycle since 2002. Follow developments on our Senate status page.

Frequently asked questions

What is the new reference price for corn under H.R. 7567?

Reference prices for major commodities including corn are raised above their 2018 Farm Bill statutory levels under H.R. 7567. The exact per-commodity figures are to be confirmed from the final enrolled bill text. The increases reflect higher input costs and market conditions during the 119th Congress debate, and were a top priority for corn, wheat, and peanut producer groups.

How do I choose between ARC and PLC and can I switch every year?

You elect between Price Loss Coverage (PLC) and Agriculture Risk Coverage, either ARC-County or the whole-farm ARC-Individual, on a commodity-by-commodity basis. H.R. 7567 carries forward the annual election flexibility from the 2018 Farm Bill, so you can revisit the choice each year based on your expectations for prices and county revenue.

When would I actually receive a PLC or ARC payment under the new rules?

PLC pays when the national average market price falls below the statutory reference price. ARC pays when county or farm revenue falls below a benchmark. If market prices stay high, PLC may not trigger even with higher reference prices. After enactment, USDA's Farm Service Agency needs rulemaking and systems updates, so there is typically a lag before first crop year payments.

How do marketing loan rates affect what I can borrow against my crop?

Marketing loan rates set the per-unit floor at which you can take out a commodity loan against your harvested crop, and they determine loan deficiency payments when market prices fall below that floor. H.R. 7567 raises marketing loan rates above 2018 levels to reflect higher production costs. The exact per-bushel and per-pound figures are to be confirmed from final text.

Do the new reference prices make the farm bill more expensive than the 2018 bill?

Higher reference prices increase the projected baseline cost of the commodity title, which is among the largest drivers of overall farm bill spending. However, CBO scores for Title I of H.R. 7567 are to be confirmed. If market prices remain elevated, PLC may not trigger, which could mean the increases raise the safety net threshold without producing large immediate outlays.

Are there income limits that could make me ineligible for commodity payments?

Yes. Title I addresses payment limitation rules and adjusted gross income (AGI) eligibility thresholds. The 2018 structure, which set a $125,000 per person per commodity program cap along with AGI limits, is the baseline. Any tightening or loosening of those thresholds under H.R. 7567 is to be confirmed from final text, and these provisions often see amendment pressure during Senate debate.

Sources

• Congress.gov , H.R. 7567 bill status and text, dated 2026-07-10.
• Congressional Research Service , background on ARC, PLC, reference prices, and payment limits.
• USDA Farm Service Agency , commodity program participation and administration.