The Farm Assistance and Revenue Mitigation Act (FARM) was introduced to Congress by Rep. Trent Kelly to offset some of the financial pressure faced by producers waiting on a new farm bill. The Act aims to provide payment assistance to eligible farmers. Farm CPA Paul Neiffer said the measure appears to have bipartisan support.

FARM uses specific formulas for eight major crops: corn, soybeans, wheat, cotton, rice, sorghum, oats and barley. Payments are based on actual planted acres in 2024, plus an additional 50% for acres that couldn’t be planted. A payment calculation formula is based on USDA’s projected costs and national returns. The current proposed formula is (USDA’s Projected Cost of the Crop – National Projected Returns) x Eligible Acres x 60% = Total Payment.

Limitations include:

  • Payment limits of $175,000 per person or entity.
  • Farm equipment gain exclusion.
  • Total assistance is likely around $20 billion, with corn receiving the largest share.

Major agricultural organizations, including the National Corn Growers Association and American Soybean Association, support the Act. However, some revisions are expected before passing.

Read more on the FARM Act here.