USA Rice: USDA Announces PLC Payment Rates

On Friday, the U.S. Department of Agriculture’s Farm Service Agency published the final 2025 Market Year Average (MYA) prices and Price Loss Coverage (PLC) payment rates for southern long and medium grain rice. Attached is a slide deck with some long grain rice PLC payment examples. The USA Rice Price Loss Coverage Program (PLC) Calculator has been updated on the USA Rice website and is available here.

Long Grain

• Statutory reference price: $16.90/cwt
• Final MYA price: $10.10/cwt
• Final long grain PLC payment rate: $6.80/cwt

Medium Grain

• Statutory reference price: $16.90/cwt
• Final MYA price: $14.60/cwt
• Final PLC payment rate: $2.30/cwt

The MYA and payment rates for temperate japonica rice will be published in January.

We understand that payment limits will likely be a challenge for many, given the depressed MYA and significant payment rate for long grain rice this year. You are likely aware, but as a reminder, the inflation adjustment that was added to the payment limit under OBBBA indexes the payment limit for the 2025 crop year at $160,000. According to the USDA, the payment limits will increase to $164,000 in CY2026 and $170,000 in CY2027.

Additionally, a sequestration reduction is still applied to the payment at a rate of 5.7 percent. However, the sequestration percentage will be applied to the payment amount determined before any reductions have been applied, including payment limit provisions. These details are outlined in the FSA Handbook, and the relevant section is highlighted below (NOTE: the handbook has not been updated with the new, increased payment rates).