Liu’s 5Rs of Risk Management Model
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The One Big Beautiful Bill Act (OBBBA) has changed the way U.S. Department of Agriculture (USDA) payment limitations apply to different farm business structures. As discussed in my previous article, Limited Liability Companies (LLCs) that are not taxed as C corporations and S corporations may now qualify for payment limitation treatment similar to general partnerships.…
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Yangxuan Liu, Associate Professor, University of Georgia; Michael R Langemeier, Professor, Purdue University The One Big Beautiful Bill Act (OBBBA) changes how U.S. Department of Agriculture (USDA) payment limitations apply to different farm business structures. On June 2, 2026, USDA released the final rule (link) explaining how this provision will be administered beginning with the…
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The One Big Beautiful Bill Act creates an opportunity to allocate up to 30 million additional base acres nationwide for covered commodities. Eligibility is based primarily on a farm’s planting history from 2019 through 2023. On June 1, 2026, the USDA Farm Service Agency (FSA) began sending Landowner Base Allocation Letters to producers and landowners.…
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If risk alone determined outcomes, farms facing the same market conditions would experience similar results. Yet, as discussed in my previous article (Link to the article), that is clearly not what we observe in practice. Some farms remain resilient during difficult times, while others struggle under the same economic pressures. Understanding why requires looking beyond…
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The U.S. row crop sector is currently under significant economic pressure. Lower commodity prices, high input costs, policy uncertainty, and ongoing trade disruptions have combined to create a challenging operating environment for many producers. It is clear that all producers are currently facing a challenging farming environment. However, we also observe meaningful differences in outcomes…