One Big Beautiful Bill Creates Opportunity for Cotton Farmers

Alabama cotton farmers are encouraged to contact their local Farm Service Agency (FSA) office given recent changes to Stacked Income Protection Program (STAX) coverage, Agriculture Risk Program (ARC) and Price Loss Coverage (PLC) options.

Signed into law July 4, the One, Big Beautiful Bill resulted in updated reference prices applying to the 2025 crop year. Normally, cotton farmers who selected the STAX coverage option were not eligible for enrollment in Agriculture Risk Program (ARC) or Price Loss Coverage (PLC). However, the U.S. Department of Agriculture (USDA) acknowledges these farmers may have taken the PLC option instead had they known Congress would adjust the reference prices for the 2025 crop year.

"This is really a case-by-case, farm-by-farm decision, but we wanted to make certain everyone was aware of this situation," said the Alabama Farmers Federation's Mitt Walker. "Although there are a number of variables that will impact the final PLC payment scheduled for issue next fall, there is an expectation that - in many scenarios - the PLC payment would be more beneficial than any indemnities triggered by STAX".

Growers wishing to enroll their seed cotton base acres in PLC for the 2025 crop year should contact their local FSA office by the late enrollment deadline of Tuesday, Sept. 30.

USDA expects STAX payments for the 2025 crop year to be announced by summer 2026, while PLC payments for the 2025 crop year will be announced next fall.

Acres of seed cotton may be enrolled in ARC or PLC by Sept. 30; however, those acres will not be eligible for STAX payments. Since those acres would not have been correctly reported on the acreage report, the producer must still pay 60% of the premium as a penalty.

There is no option to revise the acreage report. Moreover, producers will not have the opportunity to reverse that decision, even if STAX would have paid more.

If STAX coverage changes due to enrollment in either the ARC or PLC program, Hurricane Coverage Range will not increase unless the producer reports such coverage change to the insurance company by the acreage reporting date.