A Poll - Are You Waiting for USDA Guidance on LLCs and S-Corporations
We are doing a poll to see if this is affecting you
The One Big Beautiful Bill Act was passed in July of 2025 and implements new policies on how LLCs, S corporations and other entities will be treated for payment limits.
Under the old rules, these entities were limited to one payment limit for ARC, PLC and certain other programs. They are supposed to now be treated just like general partnerships where payment limits are based on the number of “equal” owners.
However, we are still waiting for guidance from USDA as to when this will start. We have posted on this before and we are still waiting and waiting to see if it will apply for 2025, 2026 or even the 2027 crop year.
Here is the poll:
We operate as a LLC, but we are taxed as a partnership. So it is just pass through income to 3 partners. Not only do we have only one limitation, but the LLC runs up against the average AGI limitation. We are in an area of high value crops and even higher production cost.
The FSA office is still telling farmers the payment limit is $125,000. For a wheat farmer, even at $155K, you limit out quickly at the projected payment. I read it will possibly be raised to $160k? Thanks