OSU’s Dr. Hagerman Details Major Farm Bill Changes for 2026: New Base Acres, Higher Price Supports, and Livestock Relief. As agricultural producers across the United States brace for a shifting economic landscape, significant changes are coming to federal farm programs that could reshape the bottom line for Oklahoma farmers and ranchers.
In a recent interview with Farm Director KC Sheperd, Oklahoma State University Specialist Dr. Amy Hagerman broke down the complexities of the upcoming “One Big Beautiful Bill”—the legislative package bridging the gap to the next Farm Bill. From a historic opportunity to add crop base acres to vital updates for livestock disaster assistance, the changes offer a mix of immediate relief and long-term structural shifts.
A “One-Time” Opportunity for 30 Million Acres
According to Hagerman, one of the most significant aspects of the new legislation is a rare chance for producers to update their operational base.
“This is a one-time opportunity across the entire nation to add 30 million acres of new base,” Hagerman said. She clarified that this update does not involve reassigning or removing old base acres, but rather adding acreage where production has historically exceeded the base on file.
For Oklahoma, this is particularly relevant for the cotton industry. “This is an opportunity to bring that unassigned base back into crop base that can be used for programs,” she added, referencing the “unassigned” acres left over from the 2018 generic base redistribution.
Higher Reference Prices to Combat Lower Markets
With commodity markets softening, the bill’s adjustment of reference prices for the Price Loss Coverage (PLC) program comes at a critical time. Hagerman highlighted wheat as a prime example, noting the reference price jump from $5.50 to $6.35 per bushel.
“It’s likely that not only are we going to trigger a PLC payment in the current market environment, but that it will be larger than it would have been under the previous bill,” Hagerman explained. “When we reflect on our costs of production… that’s a really powerful change for producers in terms of the safety net.”
She advised producers who may have favored the Agriculture Risk Coverage (ARC) program in recent years to take a fresh look at PLC, as it lacks the revenue guarantee limits that constrain ARC payments.
New Logic for Livestock Disaster Programs
The legislation also addresses long-standing grievances regarding the Livestock Indemnity Program (LIP), specifically regarding pregnant livestock killed in disasters like lightning strikes or floods.
Previously, producers were compensated only for the cow, ignoring the value of the unborn calf. “Now a producer… can get the value of the cow plus 85% of the value of a calf reflecting the fact that she’s heavy-bred,” Hagerman noted. Given that Oklahoma disasters often strike during calving season, this change better reflects the true economic loss for ranchers.
Additionally, adjustments to the Livestock Forage Program regarding D2 drought status are expected to shorten the timeline required for eligibility and improve potential payments.
Bridge Assistance and Estate Planning
Hagerman touched on the Farmer Bridge Assistance (FBA) program, which offers a one-time payment with a $155,000 limit per person or entity. Unlike previous disaster aid, FBA does not require the purchase of future crop insurance, though it is limited to planted acres—excluding “prevented plant” land.
Looking toward the future, the bill provides substantial benefits for farm succession. With estate tax exemptions rising significantly—up to roughly $30 million for married couples—Hagerman observed that “very few of our farms will be subject to those estate taxes under these new rules.”
Furthermore, the bill changes payment limits for legal entities like LLCs. In the future, payment limits will be applied to individual members of an LLC rather than the entity as a whole, allowing producers to combine liability protection with federal program benefits more effectively.
The Takeaway: Lean on Your “Trust Network”
With the volume of changes and new programs emerging rapidly, Hagerman urged producers not to navigate the bureaucracy alone.
“Form that trust network that you have,” she advised, suggesting regular contact with crop insurance agents, lenders, attorneys, and the Farm Service Agency (FSA). “Really develop your trust network and lean heavily into your trust network.”
