USDA ERS · national trends · 1995–2026

Farm program spending trends

How federal farm program spending has shifted over three decades, from commodity supports to conservation and insurance, from USDA ERS Farm Income & Wealth Statistics.

Total government payments, 1995–2026

$0B$10B$20B$30B$40B$50B 199519992003200720112015201920232026 $44.3B

Total USDA government payments rose from $7.3B in 1995 to $44.3B in 2026, spiking in disaster and pandemic-relief years.

Source: USDA ERS Farm Income and Wealth Statistics As of FY2026

Conservation program spending growth

$1B$2B$3B$4B$5B$6B 199519992003200720112015201920232026 $5.29B

Conservation spending has grown steadily since the 2002 Farm Bill expanded EQIP and CSP, with a further step-up after the 2022 Inflation Reduction Act.

Source: USDA ERS Farm Income and Wealth Statistics As of FY2026

Net farm income over time

$0B$50B$100B$150B$200B 199519992003200720112015201920232026 $153B

Net farm income reflects total agricultural output minus production expenses - $153.4B in 2026. Government payments cushion income in low-price and disaster years.

Source: USDA ERS Farm Income and Wealth Statistics As of FY2026

The shifting farm safety net

Federal farm program spending has undergone a significant transformation since the 1990s. Direct commodity payments, once the dominant form of farm support, have given way to a more diversified portfolio of risk-management tools, conservation incentives, and insurance subsidies. The breakdowns above are tracked on PlainFarmData's programs page.

A state that received large direct payments in the 2000s may now receive similar total support through crop-insurance subsidies and ARC/PLC payments, but the mechanism and conditions are very different. Understanding these trends is essential for evaluating current farm-policy debates and interpreting state-level payment data.

Commodity programs

Direct payments, fixed per-acre payments to producers of covered commodities regardless of market prices, were a cornerstone of farm support from 1996 until the 2014 Farm Bill eliminated them. They were replaced by ARC and PLC, which are counter-cyclical: they only pay when prices or revenue fall below benchmarks, so commodity-program spending now fluctuates with markets rather than flowing as a predictable annual subsidy.

Crop insurance expansion

The federal crop-insurance program has become the largest single component of farm safety-net spending. Premium subsidies, which cover roughly 60% of farmer-paid premiums on average, now exceed commodity-program payments most years. Indemnity payments are driven by weather events and price movements; PlainFarmData tracks crop-insurance loss ratios by state.

Source: USDA Economic Research Service, Farm Income and Wealth Statistics USDA Economic Research Service, Farm Income and Wealth Statistics National annual series, fiscal years 1995–2026