Will the Farmer Bridge Assistance dollars be enough to offset losses?

The U.S. Department of Agriculture recently announced payment rates for the Farmer Bridge Assistance Program, but there are still some gaps.

Low commodity prices, elevated input costs and ongoing market uncertainty have many farmers facing another year of negative or near-break-even returns.

The Trump administration’s $12 billion in economic assistance for farmers — with $11 billion directed to row crop producers and the remaining $1 billion reserved for specialty crops and sugar growers — provides timely relief as farmers prepare for the 2026 planting season, but does not fully cover farmers’ losses over the last few years.

The final per-acre rates set by USDA are: $44.36 for corn, $30.88 for soybeans and $39.35 for wheat, among 16 other eligible commodities.

So, that means the average 1,500 acre grain farm in Illinois, with acres planted to corn and soybeans on owned and cash rented farmland, should expect to receive nearly $38 per planted acre or just over $56,000 in total FBA support.

Payments will be based on producers’ Farmers Acreage Reports, which were confirmed back in December. Producers who reported eligible acres to the Farm Service Agency will have a pre-filled application available and should review, complete and return it to their local FSA county office.

More information on the application process, including a payment calculator, is available at: https://tinyurl.com/FBA-Program.

At the state level, payments are projected to be highest in Texas at $1.1 billion, followed by Iowa at $893 million, Kansas at $888 million and Illinois at $832 million.

Midwest and Corn Belt states in total are expected to receive $6.9 billion, or 64%, while Southern and Southeast states are expected to receive about $2.8 billion, or 26%.

Farmers who qualify for the FBA Program can expect payments in their bank accounts by Feb. 28.

Record Milk Production Masks Underlying Strain

U.S. milk production is setting records, but those volumes are sending increasingly misleading signals about the health of the dairy sector.

Milk cow inventories are at their highest level since 1993, even as replacement heifer numbers have fallen to their lowest point since 1978 — a divergence driven by short-term herd management decisions rather than true expansion.

Strong beef prices and elevated beef-on-dairy premiums have encouraged farmers to keep cows in production longer and shift breeding toward beef genetics.

While that strategy has provided an important income offset through calf sales, it has also inflated milk supply and dampened farm-level milk prices, worsening returns on the milk side of the business even as total farm revenue appears more resilient.

Lower milk prices have improved U.S. competitiveness abroad, supporting record cheese and butter exports in 2025.

But this export-driven relief masks a growing imbalance at home — today’s production gains rely on older cows and a shrinking replacement pipeline.

The question now is how long milk production can remain elevated before aging cows and a thinning replacement supply force a sharper adjustment.

James Henry is the executive editor of Illinois AgriNews and Indiana AgriNews.