Don’t Forget the Sequestration Cut on Your Fall ARC and PLC Payments
Don't forget to reduce your final ARC and PLC payments by the 5.7% sequestration cut baked into law
I’ve spent a lot of pixels lately helping you estimate your 2025 ARC and PLC payments, and the numbers for a lot of you look better than they have in years. But before you pencil that full figure into your cash flow, there’s one last reduction that quietly comes off the top — and it’s the one farmer’s forget every single year.
Sequestration.
Here’s the piece people miss. Your 2025 crop-year ARC and PLC payments don’t go out until after October 1, 2026. That timing matters, because it puts the payment in the government’s 2027 fiscal year, and federal budget sequestration applies a flat percentage cut to those payments before the check ever reaches you. For this round, that cut is 5.7%.
So, walk the full stack of reductions with me, because they stack in order:
