What’s New for Crop Insurance: Understanding the “One Big Beautiful Bill” 

Farmers and ranchers have new opportunities this year thanks to the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. This legislation made several important updates to the Federal Crop Insurance Act, aimed at improving affordability, flexibility, and access to coverage—especially for beginning farmers and ranchers. 

Here’s what you need to know about how these changes could impact your operation for the 2026 crop year and beyond. 

1. Expanded Benefits for Beginning Farmers and Ranchers (BFR) 

If you’re new to farming or ranching, this is big news. The definition of a Beginning Farmer or Rancher (BFR) has changed—now including individuals who haven’t actively operated and managed a farm or ranch for more than 10 crop years, regardless of the state where they’ve farmed. 

What’s changing: 

  • Extends beginning farmer and rancher eligibility from 5 to 10 crop years

  • Updates additional premium subsidy rates: 15% (years 1–2), 13% (year 3), 11% (year 4), and 10% (years 5–10)

What you should do: 

If your eligibility changes under this new definition, you can submit a new or amended BFR application with your current Approved Insurance Provider (AIP). 

Note: Veteran Farmers and Ranchers (VFR) remain unchanged, but if you qualify as both a BFR and VFR, you’ll receive the higher of the two benefits. 

2. Area Based and Crop Coverage Enhancements 

The OBBBA also improves access to area-based insurance programs and supplemental coverage options for 2026 crop year. 

Supplemental and Enhanced Coverage Options 

  • The Supplemental Coverage Option (SCO) premium subsidy increases from 65% to 80%. 
  • This same boost applies to: 
  • Enhanced Coverage Option (ECO) and Margin Coverage Option (MCO) 
  • Hurricane Insurance Protection - Wind Index (HIP-WI) and Fire Insurance Protection - Smoke Index (FIP-SI) 

This means producers can afford higher levels of risk protection—especially valuable in years with weather volatility or revenue uncertainty. 

Even More Flexibility for SCO Users 

You can now purchase SCO coverage even if you participate in Area Risk Coverage (ARC) through the Farm Service Agency. That means you no longer need to report acreage under which ARC is elected, simplifying your paperwork and broadening your protection options.  

Improving Land Access Through Prevented Planting Relief

It removes the “insured” requirement from the “1 in 4” rule for prevented planting payments. Producers must still show the land was planted and harvested (or adjusted for an insurable cause of loss) in one of the previous four years.

Whole-Farm Revenue Protection (WFRP) 

  • The maximum coverage level increases from 85% to 90%. 
  • Premium subsidy rates remain the same as the 85% level—so you can boost your protection without paying more. 

3. Updated Premium Support Levels 

Increased premium support levels—how much the government subsidizes your premium—have also been updated. The Risk Management Agency (RMA) adjusted subsidy rates to improve affordability across different coverage levels and unit structures. 

  • 75% Coverage and lower +5 percentage points (max 80% subsidy)
  • 80% and 85% +3 percentage points

These rates apply to all policies using the Common Crop Insurance Policy, Basic Provisions (CCIP). 

4. Key Dates to Remember 

  • July 1, 2025: New OBBBA provisions apply to all crop insurance policies with a Sales 501(c)(3) Closing Date (SCD) on or after this date. 
  • ARC and PLC enrollment including reference prices which are set to increase between 10-21% for major covered commodities such as soybeans, corn and wheat and will reach eligible farmers on October 1, 2026.
  • 2027 Crop Year: RMA will increase maximum coverage level for SCO to 90% in 2027 crop year with 80% subsidy. 

5. What This Means for You 

In short, the One Big Beautiful Bill makes crop insurance more inclusive, affordable, and flexible. Whether you’re just starting your ag operation or looking to maximize your risk protection, there are new opportunities to strengthen your safety net and improve your financial resilience. 

Need Help Navigating the Changes? 

The crop insurance experts at First State Insurance Agency are here to help you make sense of these updates and understand how they apply to your unique operation. We’ll walk through your current policy, discuss your goals, and help you take advantage of any new benefits or subsidies available under the OBBBA. 

Contact your local First State Insurance Agency office or reach out to your trusted crop insurance agent today to schedule a review before your next sales closing date.