A retroactive interpretation tied to equipment gains could open the door for some farmers to qualify for a higher Supplemental Disaster Relief Program payment limit, while updated projections for 2025 ARC and PLC payments and new tax guidance add to the list of items producers should revisit with their advisers.
Retroactive SDRP change may help some farmers qualify for higher payment limits
Neiffer says USDA clarified that equipment gains are now automatically treated as farm income, a change that expands 2023 and 2024 SDRP payment-limit eligibility retroactively. Equipment gains count as farm income for purposes of determining whether a producer meets the more-than-75%-of-income-from-farming test tied to an additional SDRP payment limit.
“That means farmers whose CPA told them, ‘Hey, you don’t qualify,’ really need to go back and find out if they now qualify,” Neiffer says. “Likely, the reason the CPA told you you didn’t qualify is because you couldn’t meet that two-thirds test.”
He adds that he has spoken with many CPAs and farmers who have run into that issue.
“There’s probably several hundred farmers out there that would qualify for an additional payment limit,” he says. “Again, not necessarily a double payment, but that extra payment limit.”
For row-crop producers, Neiffer says the change could mean an additional $125,000 in payment-limit room. For specialty-crop producers, it could mean an extra $775,000 to $900,000.
Neiffer says April 30 is the deadline to file the FSA-510 for SDRP’s more-than-75% test.
“So you don’t have to panic trying to get this done now,” Neiffer says. “But the quicker you get it done, the sooner you get your payment.”
2025 ARC/PLC outlook: Wheat looks strong for PLC, while corn and soybeans are mixed
PLC appears stronger than ARC for some crops and regions, especially wheat and grain sorghum, while corn and soybeans depend more on geography and yields, Neiffer says.
As the marketing year average price picture firms up, he says the biggest remaining uncertainty for some crops is less about price swings and more about regional yield outcomes.
For corn and soybeans, Neiffer describes a mixed regional picture:
• Eastern Corn Belt: ARC may pay more where yields were lower
• Western Corn Belt, including Minnesota: PLC may pay more
In many wheat-growing states, Neiffer says PLC appears likely to outperform ARC. He cited a final MYA price of about $5.06, which implies a PLC payment of about $1.29 per bushel. After applying the 85% factor, he said the payment works out to roughly $1.09.
Mileage rate rises midyear
Neiffer also highlighted a midyear increase in the standard mileage rate, which rose from 72 cents to 76 cents per mile.
“Most farmers probably for their farm pickup probably don’t use the mileage rate, but for their other vehicles like the spouse’s vehicle that runs into town to the bank,” he says.
He says the increase reflects higher fuel costs. Trips logged from Jan. 1 through June 30 use the previous rate, while trips from July 1 through the end of the year can be claimed at 76 cents per mile.
Neiffer also notes that the 2025 payment limit was set at $160,000, with the 2026 payment limit set at $164,000.
Taken together, the updates are a reminder for producers to revisit both program eligibility and tax records with their advisers before assuming earlier guidance still applies.
