APRIL 2, 2026 | VOLUME 29 | ISSUE 7
Farm Bureau Press REFERENCE PRICES ARE RISING, BUT IS THE SAFETY NET KEEPING UP?
Congress recently updated commodity program reference prices through the One Big Beautiful Bill, marking the first meaningful increase since the 2014 farm bill. The changes are intended to strengthen the farm safety net as commodity prices decline and input costs remain elevated. An important question remains: do the new reference prices keep pace with inflation and today’s cost of producing crops?
For many farmers, the answer will determine whether government programs provide meaningful protection with the current farm economy.
A PEEK INSIDE
American Farm Bureau Shares Feeding the Economy Report, Page 2
Reference prices serve as the benchmark for the Price Loss Coverage (PLC) program. When the national marketing year average price falls below the reference price, farmers receive assistance to help offset market losses. They also create a price floor for the Agriculture Risk Coverage (ARC) program, as benchmark revenue cannot fall below the statutory reference prices. These reference prices were set in 2014, based upon market conditions in 2012, and were unchanged in the 2018 farm bill. Global trade disputes and a sharp rise in input costs have significantly weakened the safety net, necessitating supplemental assistance programs every year since the 2018 bill was passed. Updated policy raises statutory reference prices for most program crops. Corn increases from $3.70 to $4.10 per bushel, soybeans from $8.40 to $10.00, wheat from $5.50 to $6.35 and long-grain rice from $14.00 to $16.90 per hundredweight. Inflation complicates that improvement. Figure 1 shows if the 2018 reference prices had been adjusted for inflation, today’s values would be higher.
Six Inducted into Class XXXVIII Arkansas Ag Hall of Fame, Page 3
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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION