Texas rice farmers will receive an additional payment through the Farm Service Agency’s (FSA) Rice Production Program, which provides up to $250 million in assistance to rice farmers based on 2022 rice acres.

“While increased input costs have impacted many agricultural producers, record high increases in 2022 had a disproportionate economic impact on rice producers,” said Kelly Adkins, State Executive Director for FSA in Texas. “I am pleased that Congress authorized the funding needed to not only provide one payment to Texas rice producers, but also sufficient funding to now provide an additional payment. This financial assistance provides a much-needed capital inject for rice production.”

On Dec. 29, 2022, President Joe Biden signed into law HR 2617, the Consolidated Appropriations Act of 2023, which provided the authority and funding for the U.S. Department of Agriculture to make payments to rice farmers based on data already on file with the agency, including planted acres and acres prevented from being planted.

Payments
As part of FSA’s efforts to streamline and simplify the delivery of additional Rice Production Program benefits, farmers are not required to submit a new application for the additional Rice Production Program payment. Rice farmers having a previously approved Rice Production Program application and who received an initial program payment will receive an additional payment of .28 cents per pound based on previously reported data.

FSA made an initial payment to eligible farmers at a reduced payment rate of one cent per pound, making the total overall payment rate 1.28 cents per pound.

Payment limitation
The payment limitation for the program is set by statute and is higher if the farmer’s average adjusted gross farm income (income from activities related to farming, ranching or forestry) is more than 75% of their average adjusted gross income (AGI). Specifically, a person or legal entity with an average AGI of less than 75% of their average AGI cannot receive, directly or indirectly, more than $125,000 in payments.

Farmers who derive 75% or more of their average AGI from farming qualify for a $250,000 payment limit. AGI is based on the three taxable years preceding the most immediately preceding complete tax year.

More information
For more information, view the Rice Production Program fact sheet or contact your local USDA service center.