During the farm bill legislative process in 2024, the House Agriculture Committee proposed increases to the Nonrecourse Marketing Assistance Loan (MAL) rates that were predominantly 10% higher than the existing rates for the major commodities shown in Table 1. A discussion of the 2024 House and Senate proposals was published in Southern Ag Today on June 24, 2024. While the farm bill was never finalized in 2024, on July 4, 2025, President Trump signed into law the “One Big Beautiful Bill” that included many agricultural provisions. New MAL rates, similar to the previous House Agriculture Committee proposal, were included in Title I Subtitle C of this bill, effective with the 2026 crop year through the 2031 crop year.
Here we compare the MAL rate of 2018 to the new MAL rate, as well as discuss the function of the MAL as a marketing tool to cover operating costs of production. Table 1 shows the 2018 loan rate and the new MAL rates. The MAL rate has increased 10% across the board, except for upland cotton which ranges between 6% and 22%. This wide-ranging percentage increase for upland cotton reflects how the MAL rate in the 2018 Farm Bill is specified from $0.45 to $0.52/lb, but the new rate is a flat $0.55/lb. Given that the loan rate for upland cotton has not actually been below $0.52/lb since the 2018 Farm Bill, this effectively translates to a 6% increase.
Table 1: MAL Rates from the 2018 Farm Bill and the One Big Beautiful Bill
| Commodity | Unit | 2018 Farm Bill Loan Rate per Unit | New Loan Rate Per Unit | Percentage Increase in Loan Rate from 2018 | Forecast Operating Cost per Acre for 20261 | 2026 Yield Projection2 |
| Barley | bu | 2.50 | 2.75 | 10% | 193.19 | 81.7 |
| Corn | bu | 2.20 | 2.42 | 10% | 457.90 | 183.7 |
| Oats | bu | 2.00 | 2.20 | 10% | 168.16 | 66.2 |
| Peanuts | ton | 355.00 | 390.00 | 10% | 641.80 | 3986 |
| Rice | cwt | 7.00 | 7.70 | 10% | 784.29 | 7745 |
| Sorghum | bu | 2.20 | 2.42 | 10% | 184.07 | 71.9 |
| Soybeans | bu | 6.20 | 6.82 | 10% | 245.59 | 53.1 |
| Upland Cotton* | lb | 0.45-0.52 | 0.55 | 6%-22% | 568.36 | 882 |
| Wheat | bu | 3.38 | 3.72 | 10% | 161.25 | 50.1 |
2Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri, U.S. Agricultural Market Outlook, April 2025,
FAPRI-MU Report #01-25
*For upland cotton, the 2018 Farm Bill specifies that the marketing loan rate shall be between $0.45-$0.52/lb and not less than 98%
of the loan rate for the preceding year. The rate has been $0.52/lb every year since 2018.
The MAL can be used as part of a broader marketing plan to provide an influx of cash at harvest to help cover operating loans or expenses with potentially more favorable terms. With certainty of the MAL rate through 2031, farmers should now consider how this tool can be used for their specific operation to allow for more time to market crops after harvest. A factsheet with additional information is available from the U.S. Department of Agriculture’s Farm Service Agency
Reference
Rabinowitz, Adam (June 24, 2024). “Current Farm Bill Negotiations for the Marketing Assistance Loan Program.” Southern Ag Today 4(26.1). Available at: https://southernagtoday.org/2024/06/24/current-farm-bill-negotiations-for-the-marketing-assistance-loan-program/.
Bafowaa, Bridget, and Adam Rabinowitz. “New Marketing Assistance Loan Program Rates Established for 2026-2031 Crop Years.” Southern Ag Today 5(31.3). July 30, 2025. Permalink
Leave a Reply