USDA Update - June 23, 2026
Kiowa County USDA Service Center Staff
IMPORTANT DATES TO REMEMBER:
- JULY 3rd - SERVICE CENTER CLOSED: Independence Day Holiday.
- JULY 15, 2026 - Spring acreage reporting deadline.
- AUGUST 12, 2026- SDRP - Supplemental Disaster Relief Program – Stage 1 and Stage 2 – application. NEW DATE – PROGRAM HAS BEEN EXTENDED
- AUGUST 31, 2026 - Review base allocation summary, deadline to notify FSA regarding acreage corrections, resolving subsequent acres or opting-out.
- SEPTEMBER 15, 2026 - Deadline for notifying FSA to be considered a Qualifying Pass-Through Entity or QPTE for 2026 forward. Specific to LLC’s and S-Corps only.
- LIVESTOCK FORAGE PROGRAM - Kiowa County eligible for 3-month payment. Apply before March 1, 2027.
- CRP EMERGENCY GRAZING available - 50% stocking rate reduction during primary nesting. Paperwork begins with FSA. Visit Farmers.gov for more information regarding deadlines and programs available through FSA and NRCS.
- CRP PRIMARY NESTING SEASON – March 15 – July 15. No grazing or contract management activities authorized. Grassland CRP contracts are exempt.
QUALIFYING PASS-THROUGH ENTITIES or QPTE
Below is the news release regarding USDA’s new rule regarding qualifying pass-through entities. The FSA office will be reaching out to the contact person for LLC’s and Corporations currently on file in the next couple of weeks to determine if they qualify and wish to be considered a QPTE as there is eligibility paperwork to complete.
Producers who contact the office prior to September 15, 2026, the QPTE change will be effective for 2026 forward. If FSA is contacted after September 15, 2026, the QPTE change will be effective for 2027 forward.
The U.S. Department of Agriculture’s Farm Service Agency (FSA) is expanding payment limitation and payment eligibility provisions that affect program payments including allowing for the equitable treatment of business entities. Additionally, producers will benefit from an increased payment limitation for certain programs, and a broader definition of farming income that will result in more exceptions to income limitations.
These changes were outlined in the Working Families Tax Cuts Act which provides a large investment in American agriculture by improving eligibility provisions, the farm safety net, disaster assistance, and price support programs. USDA previously announced that this fall, producers will benefit from increased reference prices for major commodities. This announcement gives producers more flexibility in structuring their operations and provides a stronger safety net.
Payment Eligibility
Starting with the 2026 crop year, for payment eligibility purposes, FSA will treat applicable limited liability companies (LLCs) and S-Corporations (S-Corps), and other similar entities, as “pass through entities.” Each member of the qualified pass-through entity who meets actively engaged in farming criteria will help qualify the entity for expanded payments.
Previously, farm operations that were structured as an LLC or an S-Corp were limited to a single payment limitation, which varies by program. Now, partnerships, S-Corps, qualifying LLCs, and joint ventures or general partnerships will be treated the same.
For program year 2026 only, farm operations that are structured as LLCs or S-Corps or one of the new qualified pass-through entities must file updated farm operating plans with FSA for program year 2026 by Sept. 15, 2026. After program year 2026, FSA will continue to use June 1 as the date for determining ownership interest in an entity. Producers who have crop insurance or Noninsured Crop Disaster Assistance Program coverage should contact their crop insurance agent or local FSA office before restructuring their farm operation to ensure appropriate timing for restructuring without impacting current insurance coverage.
Members of qualified pass-through entities must provide contributions and be engaged in farming for the entity to be considered actively engaged in farming.
An additional change allows members of all entity types to receive compensation for labor and management contributions and use the same contribution to qualify as “actively engaged in farming.” This update provides consistent treatment of member contributions across all entity types.
Payment Limitation and Attribution
Payment limitation changes include an increased payment limit for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) program. Starting with crop year 2025, the ARC and PLC payment limit will increase from $125,000 to $155,000. This payment limit will be adjusted going forward annually based on inflation.
Payment limitations are the maximum amount that a person or legal entity can receive for any crop year, directly or indirectly, through certain USDA programs. The same maximum payment limitation that applied to joint ventures and general partnerships will apply to qualified pass-through entities.
The policy change to payment limitation calculations takes effect beginning with program year 2026 for all qualified pass-through entities.
DROUGHT MONITOR
The drought monitor remained somewhat unchanged from last week. ( See page A5) There was a slight expansion of the D3 – extreme drought intensity for Kiowa, Bent and Otero counties.
With the D3 designation, Kiowa County is now eligible for 3-month payment for Livestock Forage Program or LFP and CRP Emergency Grazing.
LIVESTOCK FORAGE PROGRAM
Producers with grazing land physically located in Kiowa are eligible to apply for LFP.
Eligible producer must have control and risk in the two triggering factors.
- Land - control and risk in native pasture physically located in a county that is eligible for LFP. All leased land will require a written lease signed by at least 50% or more of the current ownership.
- Livestock - ownership, control and risk in livestock that normally graze the native pasture. Cattle located in feedlots are not eligible. Livestock must have been owned at least 60 days prior to the qualifying date of drought. Kiowa qualified on 5-26-2026; therefore ownership on livestock must be 3-26-2026 or before.
Payment is paid on 60% of the lessor value, land or livestock.
Contact FSA to apply.