USDA expands disaster aid and commodity-loan support under Farmers First changes
The U.S. Department of Agriculture is expanding disaster assistance and commodity-loan support for eligible producers, including higher reimbursement for certain livestock losses and broader access to Marketing Assistance Loans.
USDA’s Farm Service Agency announced the final “Farmers First” program improvements on July 8, 2026, under the Working Families Tax Cuts Act. The changes apply to eligible producers and commodity programs nationwide.
Higher reimbursement for qualifying livestock losses
Beginning Oct. 1, 2026, the Livestock Indemnity Program will reimburse qualifying livestock losses caused by predation from endangered or protected animals at 100% of market value. The previous rate was 75%.
The change could affect producers whose livestock losses are linked to animals protected under federal or other applicable conservation rules. The program update also allows eligible livestock producers to document regional price premiums when those premiums exceed the national average market price.
That provision is important because livestock values can vary by region. Under the revised documentation approach, a producer may be able to show a higher local value rather than relying only on the national average, provided the loss meets the program’s eligibility and documentation requirements.
Loan support expands for cotton and sugar producers
USDA is also increasing Marketing Assistance Loan rates. The department is expanding the loan program to additional cotton and sugar producers as part of the same set of Farmers First changes.
Marketing Assistance Loans are commodity-based support mechanisms intended to provide eligible producers with financing tied to qualifying agricultural products. Higher loan rates can change the level of support available when producers face commodity-price pressure, although producer-level benefits will depend on the applicable crop, eligibility rules and program calculations.
USDA’s announcement did not provide one nationwide dollar total for the expanded assistance. The precise loan-rate tables and individual payment amounts depend on separate USDA program notices.
Orchard and nursery assistance included
The changes also cover disaster assistance for orchardists and growers of nursery trees. Those producers can face losses from qualifying disruptions that affect perennial crops and trees, which may take longer to replace or return to production than annual crops.
The announcement places the orchard and nursery provisions alongside the livestock and commodity-loan changes rather than identifying a single payment amount for all affected producers. Eligibility, documentation and the value of a producer’s loss will determine how the assistance applies.
Broader farm-economy context
The USDA Economic Research Service forecasts average net cash farm income for farm businesses at $135,000 in 2026, 18.7% above its 2025 level in nominal terms. Farm businesses account for about half of U.S. farms but more than 90% of production value, according to the agency.
Those figures describe a forecast for farm businesses, not a guaranteed payment or result for individual producers. The Farmers First changes address specific risks, including livestock predation, orchard and nursery losses, and commodity-price pressure.
The first major effective date is Oct. 1, 2026, when the higher predation-loss reimbursement rate begins. Producers seeking assistance will need to follow the applicable USDA program notices for the detailed loan rates, eligibility requirements and documentation standards governing their commodities and losses.
Sources
- USDA Celebrates One Year Anniversary of the Working Families Tax Cuts Act, Delivers Final ‘Farmers First’ Program Improvements, USDA Farm Service Agency
- Farm Sector Income & Finances, USDA Economic Research Service
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