What's Up at the USDA Office?
Deadlines/Dates
August 2: Non-Emergency Haying/Grazing of CRP Signup Opens
August 12: Deadline to submit an SDRP application
August 31: Deadline to complete Non-Emergency Haying of CRP; Deadline to Review Base Allocation Summary
September 15: Deadline to Update Payment Eligibility for Entities
September 30: Deadline to Complete FY26 Mid-Contract Management on CRP; Deadline to remove livestock from Non-Emergency Grazing of CRP; Office Fiscal Year Rollover
October 1: FY27 Mid-Contract Management on CRP Opens
December 31: Deadline to Apply for OCCSP
USDA Expands Payment Limitation and Payment Eligibility Provisions for Farmers
The United States Department of Agriculture’s Farm Service Agency (FSA) is expanding payment limitation and payment eligibility provisions that affect program payments including allowing for the equitable treatment of business entities. Additionally, producers will benefit from an increased payment limitation for certain programs, and a broader definition of farming income that will result in more exceptions to income limitations.
Payment Eligibility
Starting with the 2026 crop year, for payment eligibility purposes, FSA will treat applicable limited liability companies (LLCs) and S-Corporations (S-Corps), and other similar entities, as “pass through entities.” Each member of the qualified pass-through entity who meets actively engaged in farming criteria will help qualify the entity for expanded payments.
Previously, farm operations that were structured as an LLC or an S-Corp were limited to a single payment limitation, which varies by program. Now, partnerships, S-Corps, qualifying LLCs, and joint ventures or general partnerships will be treated the same.
For program year 2026 only, farm operations that are structured as LLCs or S-Corps or one of the new qualified pass-through entities must file updated farm operating plans with FSA for program year 2026 by Sept. 15, 2026. After program year 2026, FSA will continue to use June 1 as the date for determining ownership interest in an entity. Producers who have crop insurance or Noninsured Crop Disaster Assistance Program coverage should contact their crop insurance agent or local FSA office before restructuring their farm operation to ensure appropriate timing for restructuring without impacting current insurance coverage.
Members of qualified pass-through entities must provide contributions and be engaged in farming for the entity to be considered actively engaged in farming.
An additional change allows members of all entity types to receive compensation for labor and management contributions and use the same contribution to qualify as “actively engaged in farming.” This update provides consistent treatment of member contributions across all entity types.
Payment Limitation and Attribution
Payment limitation changes include an increased payment limit for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program. Starting with crop year 2025, the ARC and PLC payment limit will increase from $125,000 to $155,000. This payment limit will be adjusted going forward annually based on inflation.
Payment limitations are the maximum amount that a person or legal entity can receive for any crop year, directly or indirectly, through certain USDA programs. The same maximum payment limitation that applied to joint ventures and general partnerships will apply to qualified pass-through entities.
The policy change to payment limitation calculations takes effect beginning with program year 2026 for all qualified pass-through entities.
Average Adjusted Gross Income
The Working Families Tax Cuts Act broadened the definition of farming income to be more reflective of modern agricultural business practices. As a result, diversified producers will not be penalized under USDA’s requirements for average adjusted gross income (AGI).
Producers are exempt from the $900,000 AGI cap for conservation and disaster programs if at least 75% of their average gross income is from farming, ranching, or silviculture, which now includes agri-tourism, direct-to-consumer sales, and certain equipment sales.
Additionally, qualified pass-through entities are not required to certify compliance with the average AGI limitation at the entity level. However, members individually must meet average AGI requirements, which is the same requirement for joint operations.
Producers should contact their local Farm Service Agency (FSA) county office for more information or to update their farm operating plan by the September 15, 2026, deadline for the 2026 program year.
Book Appointments Online with the Allamakee County FSA Office
The U.S. Department of Agriculture is putting farmers first by offering a new option to schedule appointments online with the Allamakee County Farm Service Agency (FSA) office. Following a successful pilot program, FSA is using a digital appointment platform across the agency to allow producers to conveniently make farm program or farm loan program appointments online.
Appointments can be scheduled through FSA’s digital platform, Microsoft Bookings, using a mobile device, tablet, laptop or desktop computer. To assist producers in finding their local FSA office to make an appointment, FSA has also launched a new FSA County Office locator that is searchable by state and by county. Each county office contact page has a unique link for producers to make an appointment online and shows contact information for the local FSA office and the farm loan team. Scheduled appointments may be in-person or virtual with the local FSA office depending on producer preference.
Producers can conveniently schedule appointments for a variety of services with both farm programs and farm loan staff. The Microsoft Bookings-based system will automatically send a confirmation email to the producer along with reminder emails for upcoming appointments.
Producers still have the option to call the Allamakee County Farm Service Agency (FSA) Office at (563) 568-2148 or visit in person to make an appointment.
Non-Emergency Haying and Grazing Conservation Reserve Program
All non-emergency haying and grazing must be discussed and approved with your local Farm Service Agency (FSA) county office prior to starting the activity. Under no circumstances may non-emergency haying or grazing be permitted if such activity would cause long-term damage to the vegetative cover on the land, determined on a site-by-site basis.
General Information
• Non-emergency haying and grazing requires a 25 percent reduction in annual rental payment.
• Land within 20 feet of a stream or permanent water body must be excluded from haying or grazing.
• Acreage will become eligible after the cover is fully established.
• All CRP practices are eligible for grazing and haying except food plots, tree or shrub plantings, and the following SAFE practices: Early Successional/Neotropical, Pheasant Recovery winter habitat, and Early Successional Quail Habitat. Grand River Grassland allows grazing but not haying.
• Acreage eligible for incidental grazing includes acreage devoted to the following practices: CP8A, CP15A, CP15B, CP21, CP21B, CP21S, CP23, CP23A, CP29, CP30, CP37, CP43 and Iowa exception for CP33.
• The participant agrees to re-establish the CRP cover at their own expense if the cover fails as a result of haying or grazing activity.
• Cannot hay and graze the same acres in the same year.
• Grazing for required management activity restarts the frequency for conducting non-emergency grazing.
• Grazing for Required anagement Activity:
- Restarts the frequency for conducting non-emergency grazing
- Maximum of 90 total days allowed
• Haying and grazing activity must not negatively impact the function of the conservation practice
Grazing Outside of the Primary Nesting Season:
• Grazing Period: April 1 – May 14 and August 2 – September 30.
- Both grazing periods may be utilized.
• Grazing Frequency: Not more than every other year.
- Contracted participants that qualify as beginning farmer may graze every year. Qualifying beginning farmer must have interest in the grazing animals per FSA policy.
- Grazing every year may only occur during one of the grazing periods, spring or late summer dates, not both.
• Stocking Rate: Stock at a rate that will allow for the planned number of animals to graze for the planned number of days without going below the minimum stubble height.
• Minimum Stubble Height:
- Introduced grasses and forbs 4 inches.
- Native grasses and forbs 6 inches.
Haying - Forage Harvest Management:
• Haying Period: Native and introduced grass and forbs August 2 – August 31.
• Haying Frequency: Not more than once every three years.
- 25 percent of the CRP acres must be left unharvested
- Only one cutting is allowed during the authorized year
• Minimum Stubble Height: All grass and forb species 4 inches
• No storing of hay is allowed on CRP acres.
• All bales must be removed by September 10.
