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USDA is preparing to implement the Rice Production Program, which will make a one-time payment to rice farmers based on 2022 plantings and prevented plantings.
The Consolidated Appropriations Act, 2023, provided the authority and funding for USDA to make payments to rice producers based on data already on file with the USDA, including planted acres and acres prevented from being planted.
About the Program
The full details of the program and application will not be available until after a Notice of Funding Availability is published later this year in the Federal Register.
How to Prepare
While the full details of the program and application will not be available until after a Notice of Funding Availability is published later this year in the Federal Register, there is something farmers can do right now to be better prepared for the signup. The payment limitation for the program is laid out in the law and is higher if the farmer’s average adjusted gross farm income (income from activities related to farming, ranching, or forestry) is more than 75%.
Specifically, a person or legal entity with adjusted gross farm income of less than 75% of their overall adjusted gross income (AGI), cannot receive, directly or indirectly, more than $125,000 in payments. AGI is based on the three taxable years preceding the most immediately preceding complete tax year. Farmers with 75% or more AGI from farming qualify for a $250,000 payment limit.
Rice farmers may visit their local county office to submit the appropriate form and certification (FSA-510, Request for an Exception to the $125,000 Payment Limitation for Certain Programs), if they want to seek the higher payment limit and get part of the paperwork done early. Farmers still have a chance to fill out the AGI form during signup as well. The form should be filled out for the 2022 crop year and can be accessed at this link .
Program Payments
More details will be added after a Notice of Funding Availability is published later this year in the Federal Register.
Resources