WASHINGTON (DTN) -- The U.S. Department of Agriculture on Wednesday announced remaining farm safety-net changes authorized under the One Big Beautiful Bill Act (OBBBA), lowering drought triggers for livestock forage assistance, increasing livestock predation indemnity payments to 100% of market value and updating marketing assistance loan programs for cotton and sugar producers.

The additional spending expands funding available through existing farm safety net programs, reducing reliance on ad hoc assistance packages.

Last month, the Farm Service Agency (FSA) issued opportunities for eligible producers to increase base acres and expanded payment limitations.

LIVESTOCK FORAGE DISASTER PROGRAM

Among the most significant changes is an expansion of the Livestock Forage Disaster Program (LFP).

Previously, producers qualified for one monthly payment after eight consecutive weeks of severe drought. Under the new law, producers may now qualify after just four consecutive weeks of D2 (severe) drought on the U.S. Drought Monitor, effective retroactively to Jan. 1, 2026.

Producers may also receive a two-month payment if D2 drought conditions persist for seven of eight consecutive weeks during the normal grazing period.

According to USDA estimates, lowering the drought trigger will cost about $343 million dollars annually. Combined with other disaster program improvements announced, the changes are expected to cost roughly $927 million dollars per year.

The annual payment limitation for LFP remains $125,000 per person or legal entity.

USDA also announced a new forage crop insurance program available beginning with the 2027 crop year in 12 states: California, Idaho, Iowa, Michigan, Minnesota, Montana, Nebraska, North Dakota, Pennsylvania, South Dakota, Washington and Wisconsin.

The new production-based policy replaces Actual Production History (APH) coverage and offers three options:

-- Yield Protection (YP): Covers production losses.

-- Revenue Protection (RP): Covers revenue losses caused by yield declines, price declines or both.

-- Revenue Protection with Harvest Price Exclusion (RP-HPE): Covers revenue losses due to yield declines or lower harvest prices.

USDA encouraged producers to contact their crop insurance agent before the Sept. 30 sales closing date.

Read more at "USDA Introduces More Crop Insurance Options for Forage Producers," https://www.rma.usda.gov/….

FULL DEPREDATION COVERAGE

USDA also expanded the Livestock Indemnity Program (LIP).

Beginning retroactively Jan. 1, 2026, producers will receive compensation equal to 100% of market value for livestock killed by federally protected predators or animals reintroduced into the wild by the federal government, including wolves and certain avian predators. Previously, only 75% of market value loss was compensated.

Gray wolves currently have populations in 10 U.S. states, primarily across the northern Rockies, Great Lakes region and Pacific Northwest. Mexican gray wolves are also found to harm livestock population in New Mexico and Arizona.

The agency also will allow regional price premiums that exceed national average livestock prices when calculating payments.

In addition, producers who filed claims for eligible unborn livestock losses during 2024 and 2025 will automatically receive additional compensation using existing Farm Service Agency records.

COTTON AND SUGAR LOAN IMPROVEMENTS

For cotton producers, USDA will raise the storage credit cap beginning with the 2026 crop and revise how the prevailing world market price for upland cotton is calculated, using the three lowest-priced growth quotes instead of five. A weekly prevailing world market price for extra-long staple cotton will also be published, similar to upland cotton.

The department also authorized refunds on upland cotton loan repayments when the adjusted world price declines within 30 days after repayment. Producers requesting a Loan Deficiency Payment (LDP) may qualify for additional payments if a lower adjusted world price is announced.

For sugar producers, USDA extended the marketing assistance loan program through 2031, increased loan rates for raw cane and refined beet sugar and required annual adjustments to sugar marketing allotments for beet sugar processors within 30 days of the January WASDE report.

SPECIALTY CROP, AQUACULTURE AND TREES

Under the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP), farm-raised fish losses caused by fish-eating birds get a rate of $600 per acre and honeybee colonies producers who file with FSA will start using a normal mortality rate of 15% for losses.

The Tree Assistance Program (TAP) reform intends to help orchardists and nursery tree growers recover more quickly after natural disasters.

It eliminated the previous 15% normal mortality threshold, increased reimbursement rates for eligible rehabilitation activities such as pruning and debris removal and extended the implementation period from 12 months to 24 months, with the option for additional extensions.

See the USDA news release: https://www.fsa.usda.gov/….

Jake Zajkowski can be reached at jake.zajkowski@dtn.com

Follow him on social platform X @jzajkow

(c) Copyright 2026 DTN, LLC. All rights reserved.