Farm Subsidy Glossary
17 key terms and acronyms used in U.S. farm subsidy programs, explained in plain language.
ARC (Agriculture Risk Coverage)
A commodity program that provides payments when actual county crop revenue falls below a guaranteed level. Farmers choose between ARC-County and ARC-Individual coverage.
CCC (Commodity Credit Corporation)
A government-owned corporation within USDA that finances most federal farm subsidy programs. Nearly all FSA payments flow through the CCC.
Commodity Payments
Direct subsidies tied to the production of specific crops like corn, soybeans, wheat, rice, and cotton. The major commodity programs are ARC and PLC.
Conservation Reserve Program (CRP)
Pays farmers annual rental payments to take environmentally sensitive cropland out of production for 10-15 years. The largest conservation program at $5.36 billion.
Crop Insurance
Federal subsidies that reduce the cost of crop insurance premiums. Administered by USDA's Risk Management Agency (RMA), NOT the FSA. Not included in our dataset.
Direct Payments
Fixed per-acre payments to farmers regardless of market prices. Eliminated by the 2014 Farm Bill but were historically one of the largest subsidy categories.
ECAP (Emergency Commodity Assistance Program)
Emergency payments to agricultural producers affected by market disruptions or supply chain issues. The single largest program in our dataset at $9.36 billion.
ELAP (Emergency Livestock Assistance Program)
Provides payments to livestock producers for losses due to disease, adverse weather, or feed shortages not covered by other programs.
Farm Bill
Comprehensive legislation reauthorized roughly every 5 years that sets farm subsidy policy. The current 2018 Farm Bill governs most programs in our dataset.
Farm Service Agency (FSA)
The USDA agency that administers farm commodity, credit, conservation, disaster, and loan programs. The source of all data on OpenSubsidies.
LDP (Loan Deficiency Payment)
Payment to a farmer who is eligible for a marketing assistance loan but agrees to forgo the loan. Paid when market prices fall below the loan rate.
LFP (Livestock Forage Program)
Provides payments to livestock producers in counties affected by drought. Triggered automatically based on U.S. Drought Monitor data.
Marketing Assistance Loans
Low-interest loans that allow farmers to use harvested crops as collateral. If market prices fall, farmers can repay at the lower price, effectively receiving a subsidy.
Payment Limitations
Federal caps on subsidy payments: $125,000 per person per year for most commodity programs. Often circumvented through entity structures and family attribution rules.
PLC (Price Loss Coverage)
A commodity program that provides payments when the national average market price falls below a reference price set by Congress. Alternative to ARC.
Program Year
The crop year or fiscal year to which a payment is attributed, which may differ from when the payment was actually disbursed.
Supplemental Disaster Relief
Ad hoc disaster payments authorized by Congress outside the regular farm bill framework. Has grown dramatically in recent years.