NDSU research explores new farm bill
A recent policy analysis by Dylan Turner and Shawn Arita from NDSU’s Agricultural Risk Policy Center explores how the One Big Beautiful Bill, signed into law on July 4, 2025, brings the most substantial changes to federal crop insurance subsidies in more than two decades.
The OBBB raises premium subsidy rates for Basic and Optional Units by 3 to 5 percentage points across all coverage levels, the first such adjustment since 2000.
Though the legislation does not explicitly modify Enterprise Unit subsidies, existing provisions in the Federal Crop Insurance Act require subsidy parity between unit types. This may trigger further increases in EU subsidies to ensure consistent per-acre support across insurance structures.
The analysis estimates that these changes could generate more than $1 billion in additional annual premium support nationwide. Farmers in North Dakota alone could receive up to $44 million in new subsidy benefits. These gains reflect both the directly legislated BU/OU increases and the likely adjustments to EU rates needed to meet federal subsidy equivalence guidelines.
The research also highlights enhancements to the Supplemental Coverage Option (SCO), which now receives an 80% subsidy rate — up from 65%, and benefits from increased flexibility in coverage levels and program compatibility. These updates are expected to improve the overall accessibility and value of SCO for producers managing complex crop risks.
“While the OBBB is often discussed in the context of commodity program reforms, the changes to crop insurance subsidies are highly consequential,” said co-author Dylan Turner. “These reforms strengthen the financial safety net for producers, especially in a period of tighter margins and weather uncertainty.”
For North Dakota, the impact of these changes may vary based on participation trends. A larger share of the state’s producers already insure at coverage levels receiving the maximum 80% EU subsidy rate, slightly dampening the relative increase in total support.
Still, researchers note that future participation shifts toward higher coverage levels could elevate benefits beyond current projections. These findings provide critical insight into how evolving Farm Bill provisions affect risk management tools central to U.S. agricultural policy.
Read the full analysis online. For more information, contact Turner at dylan.turner@ndsu.edu and Arita at shawn.arita@ndsu.edu.