USDA Announces $12B in Bridge Payments for Farmers

On December 8, 2025, the USDA announced that it will make $12 billion available in one-time bridge payments, dubbed the Farmer Bridge Assistance Program (FBA), to aid American farmers affected by “unfair market disruptions, elevated input costs, and ongoing trade-market volatility.”

The payments are intended to provide temporary financial relief during the 2025 crop cycle, bridging the gap until long-term safety-net reforms under the One Big Beautiful Bill Act (OBBBA) take effect in October 2026.

Key Program Details & “How It Works”

• The bulk, up to $11 billion, will be allocated via the FBA program to U.S. row-crop producers. Covered crops include barley, chickpeas, corn, cotton, lentils, oats, peanuts, peas, rice, sorghum, soybeans, wheat, canola, flax, sunflower, and several other commodities.
• The remaining $1 billion is reserved for specialty crops, sugar, and other commodities not covered under FBA.
• Payments will be computed using a uniform formula based on (i) 2025 planted acres as reported to the Farm Service Agency (FSA); (ii) USDA’s cost-of-production estimates; and (iii) commodity yields and prices drawn from standard supply/demand projections.
• Farms must ensure that their 2025 acreage reports are accurate — the deadline for filing correct 2025 acreage information is 5 p.m. ET on December 19, 2025.
• Commodity-specific payment rates are expected to be announced by the end of December 2025, and producers can expect payments to be released by February 28, 2026.
• Notably, crop-insurance participation is not required to receive FBA payments — though USDA strongly encourages use of the new risk-management tools provided under the OBBBA to manage future price volatility.

What Farmers / Advisors Should Do Now

• Verify and finalize 2025 acreage reports submitted to FSA — correct reporting is a precondition for payment. Deadline: Dec. 19, 2025 (5 p.m. ET).
• Monitor USDA releases for crop-specific payment rates (expected by the end of December) and follow the schedule for disbursements (payments by Feb. 28, 2026).

See:

USDA Press Release

Please contact the Fraser Stryker team with any questions.