Cotton producers are beginning to receive Price Loss Coverage (PLC) payments for the 2025 crop year, providing much-needed financial assistance as challenging economic conditions continue across the cotton industry.
Final payment rates have been established, and the Farm Service Agency (FSA) is processing payments to eligible producers. The accompanying chart provides a county-by-county breakdown of net PLC payments per seed cotton base acre for 163 Texas counties.
For the 2025 crop year only, producers will automatically receive the higher of the Agriculture Risk Coverage-County (ARC-CO) or PLC payment rates, regardless of their program election. This one-time provision provides additional financial protection for producers navigating continued economic uncertainty.
Another significant change is an increase in the combined ARC/PLC payment limitation. Beginning with the 2025 crop year, the base limitation increased from $125,000 to $155,000 per person or legal entity. With the required inflation adjustment, the payment limitation for the 2025 crop year is $160,000. The limit will continue to be adjusted annually for inflation.
With depressed cotton prices and elevated production costs continuing to strain farm profitability, these payments come at a critical time for producers. While the chart reflects final PLC payment rates, individual payments will vary based on each operation’s base acres, payment yields and applicable program provisions.
Producers with questions regarding their payments are encouraged to contact their local FSA office for additional information.
