Undersecretary Fordyce Provides Further Details on FBA Program

Dan Agri-Business, Economy, USDA-FSA

Farm Service Agency Shares Details on Upcoming Bridge Assistance Payments

With bridge assistance payments to farmers expected soon, the Farm Service Agency (FSA) is providing more insight into how those payments will be calculated and distributed. We sat down with Undersecretary for Farm Production and Conservation Richard Fordyce to discuss what producers can expect as the program moves closer to implementation.

Fordyce explained that payment rates are being designed to reflect current economic conditions across different commodities.

“You know, I think producers are going to expect a payment rate that is reflective of kind of where we are. So, you know, there’s going to be two or three components to that, to that calculation.”

One of the primary components is cost of production, which varies widely by crop.

“Number one, cost of production. So, you know, we know the cost of production between cotton is different than rice, which is different than soybeans, right? And so we’ve got a cost of production number for each individual crop, and then we’re going to arrive at a price that is probably WASDE related.”

Fordyce noted that USDA is aiming to announce payment rates soon, even as it balances timing with updated market data.

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“And we want to announce those rates, you know, the last week of December. So not sure that we’ll be able to wait till the January WASDE, but we can get really close with that rate.”

Acreage will also play a critical role in determining payment amounts. Payments will be based on what producers actually planted and reported to FSA.

“And then we’re going to use 2025 planted acres as it pertains to your FSA acreage report. And those are the acres that we’ll use.
So you’ll have a payment rate by crop per acre times the acres that you planted in 2025.”

Fordyce emphasized the importance of accurate and timely acreage reporting to ensure producers receive the correct payment.

He also reminded producers about the updated payment limitation associated with the program.

“Just remind folks the payment limitation, $155,000. So we’re using the payment limit levels that were introduced in the One Big Beautiful Bill Act.
So historically, our payment limits are $125,000. We’re moving that up to $155,000 per person or entity. I think that’ll be helpful in some cases to have that payment limit just be a little bit higher.”

As producers prepare for the upcoming bridge assistance payments, FSA officials encourage farmers to stay in contact with their local FSA offices, ensure acreage reports are filed correctly, and watch closely for official rate announcements expected later this month.

FSA Administrator Provides Further Details on FBA Program

Audio Reporting by Dale Sandlin for Southeast AgNet.