By Scout Nelson
The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) provides approximately $598.9 million in farm safety net and conservation program payments to farmers, ranchers, and landowners in South Dakota.
The funding supports farm businesses, helps cover operating costs, and strengthens rural communities. It includes payments through the Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC), and Conservation Reserve Program (CRP).
Nationwide, USDA announced $13.8 billion in gross safety net payments through ARC and PLC for the 2025 crop year. The department also provides an additional $1.8 billion in annual CRP payments for 2026. These programs help producers manage financial risks while supporting farming, ranching, and land conservation.
“These dollars help producers and landowners in our state cover operating expenses, purchase supplies and equipment, and do business with local companies, creating a positive economic ripple effect throughout our rural communities,” said Roger Chase, State Executive Director in South Dakota. “It's a tremendous investment in South Dakota agriculture and, collectively, in American agriculture.”
ARC and PLC Programs Provide Farm Income Support
The Working Families Tax Cuts Act (WFTCA) strengthens the ARC and PLC programs beginning with the 2025 crop year. The changes include higher statutory reference prices and improvements to the effective reference price calculation. These updates help improve financial protection for eligible producers.
For the 2025 crop year, farmers automatically receive the higher payment rate offered by either ARC or PLC, regardless of their original program choice. The law also raises the payment limit from $125,000 to $155,000 beginning with the 2025 crop year. Annual adjustments based on inflation apply, and the payment limit for the 2025 crop year is $160,000.
In South Dakota, the following crops trigger ARC or PLC payments in one or more counties for the 2025 crop year: barley, canola, small and large chickpeas, corn, flaxseed, lentils, dry peas, safflower, sorghum, soybeans, sunflower, and wheat.
However, the final payment amounts may be lower because of payment limit reductions and a required 5.7% sequestration rate. The Farm Service Agency (FSA) issues eligible payments as the calculations are completed. ARC-County (ARC-CO) payments depend on revenue results at the county level, so payments vary by location.
Upcoming Enrollment and Additional Base Acres
The enrollment period for the 2026 crop year is running from September 16, 2026, through December 11, 2026. Enrollment for the 2027 crop year will run from November 2, 2026, through March 15, 2027. Farmers should review the requirements and contact their local FSA county office for assistance.
The WFTCA also added 30 million new base acres to farms nationwide. Because eligible acres exceed the national limit, the FSA applied a prorated reduction of 3.69% to newly allocated base acres. South Dakota received an additional 2.1 million base acres.
These additional acres affect ARC and PLC payments beginning with the 2026 crop year and continue to support eligible producers in future years.
ARC and PLC help protect farm income when crop prices or revenues fall. PLC provides support when the effective price of a covered crop falls below its effective reference price. ARC provides support when actual crop revenue falls below a guaranteed level. Depending on the selected coverage, ARC uses either county-level revenue or individual farm revenue.
CRP Payments Support Land Conservation
The Conservation Reserve Program provides annual rental payments to eligible farmers and private landowners who establish long-term plant cover to protect natural resources. In South Dakota, the 2026 payments cover 2.6 million acres under active CRP contracts.
The program helps landowners maintain income while improving soil protection, supporting wildlife habitats, and protecting natural resources. These efforts also contribute to stronger rural economies.
Grassland CRP remains an important part of conservation on working farms and ranches. Following 2026 enrollment, the program is expected to represent more than 40% of all CRP-enrolled acres nationwide. South Dakota accounted for 1.7 million acres of Grassland CRP land.
This program allows ranchers to protect valuable grasslands while continuing livestock grazing and haying activities. It supports conservation without requiring all enrolled land to leave agricultural production.
Where Farmers Can Get More Information
Farmers who need details about ARC or PLC enrollment and 2025 crop year payments can contact their local FSA county office. Landowners seeking information about CRP participation and 2026 annual rental payments can also contact their county office.
Photo Credit: usda
Categories: South Dakota, Government & Policy