After more than a decade without major updates, reference prices used in federal farm programs are being adjusted, a change that could impact producer revenue moving forward.
In an interview with the Iowa Agribusiness Radio Network, U.S. Agriculture Secretary Brooke Rollins said those updates were included in the same H.R. 1 legislation passed last summer that also addressed tax policy affecting agriculture.
Reference prices play a key role in the farm safety net, helping determine support levels when market prices fall below set thresholds. With no new farm bill passed in recent years, those benchmarks had remained largely unchanged.
Rollins said the updates were made through that legislation as a way to address the delay in passing a new farm bill and to adjust support levels that had not kept pace with current farm conditions.
She said the updated reference prices are expected to take effect later this year and could provide additional support for producers who rely on those programs as part of their operation.
While some farm policy priorities were addressed through H.R. 1, Rollins said work on a broader, long-term farm bill is still ongoing.
She said continued discussions in Washington will be important in shaping the next phase of farm policy, particularly as lawmakers consider long-term solutions beyond the provisions already in place.
For producers, the updated reference prices may factor into planning decisions as they look toward harvest and beyond, especially as input costs remain elevated and margins stay tight across much of farm country.
