Farm Bill reference prices are statutory benchmarks used to calculate support under federal farm commodity programs. They are not forecasts or guaranteed prices for crops. The 2024 House Farm Bill proposed raising them, but that proposal did not become law; the 2025 One Big Beautiful Bill Act (OBBBA) later changed the law separately, with new statutory prices applying beginning with crop year 2025.
What a Farm Bill reference price is
A statutory reference price is a benchmark in the federal farm safety net. It helps determine whether a farm operation with eligible historical base acres may qualify for support under program rules. It does not set the price a farmer receives from a buyer, predict the market, or guarantee a payment.
The distinction matters because a crop’s market price can move independently of its statutory benchmark. The benchmark is one input in program calculations, not a floor under every sale.
How PLC and ARC use reference prices
Price Loss Coverage
Price Loss Coverage (PLC) is price-triggered: eligible producers may receive support when the relevant market price falls below the effective reference price, subject to the program’s rules. The statutory reference price is not necessarily the effective reference price used in a particular calculation.
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Agriculture Risk Coverage
Agriculture Risk Coverage (ARC) uses effective reference prices as part of its benchmark-revenue calculation. It is a revenue-based program rather than the same kind of direct price comparison used by PLC. USDA’s program overview explains the distinction between the programs.
What changed under current law in 2025
OBBBA established new statutory reference prices beginning with crop year 2025 and changed the effective-reference-price formula. The current statutory definition and values appear in 7 U.S.C. § 9011; the enacted amendment is also in the July 2, 2025 Congressional Record.
| Commodity | OBBBA statutory reference price, crop year 2025 onward |
|---|---|
| Wheat | $6.35 per bushel |
| Corn | $4.10 per bushel |
| Soybeans | $10.00 per bushel |
| Barley | $5.45 per bushel |
| Oats | $2.65 per bushel |
| Peanuts | $630.00 per ton |
These are statutory values, not a claim that each is the effective reference price in every program calculation. Beginning with crop year 2031, the law provides for annual increases of 0.5%, subject to a ceiling of 113% of the relevant listed statutory price. The law also changed the threshold in the effective-price calculation from 85% to 88%.
Why the 2024 proposal became a roadblock
The roadblock was a disagreement about how far to raise support benchmarks for different commodities. The House proposal, H.R. 8467, would have increased reference prices for commodities covered by PLC. That made the issue more than a technical formula: lawmakers had to weigh commodity-specific support levels and the consequences of changing them. The Congressional Research Service’s comparison of H.R. 8467 with then-current law documents the proposal.
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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →There is no established single statistic in the cited material that measures how much this disagreement drove the broader Farm Bill debate. The key legislative fact is clearer: the proposed 2024 increases were part of a bill that was not enacted. They must not be mistaken for current law. OBBBA subsequently enacted different statutory values and formula changes, effective beginning with crop year 2025.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read reference-price comparisons
A useful comparison needs to identify the commodity and unit, distinguish the statutory figure from the effective figure, and label the legislative version and crop years. A proposed price and an enacted price are not interchangeable, even when they concern the same crop.
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For the earlier framework, USDA’s Title I program explanation and comparison table describes the 2018 Farm Bill’s effective-reference-price mechanism: the effective price was the greater of the statutory price or 88% of an Olympic average of the prior five marketing-year average prices, with the high and low years dropped, subject to a cap of 115% of the statutory price. That description concerns the earlier framework; OBBBA changed the formula and statutory values. Do not apply the old cap or formula as if it were the current rule.
The CRS comparison of the 2024 House proposal is against the law as it stood at the time, not against OBBBA’s later amendments. USDA ERS’s commodity program table distinguishes earlier Farm Bill values from the 2025 updates.
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