%20(1).png){kind=small}
American Relief Act of 2025: Economic Assistance for North Dakota Crop Producers
- CAPTS NDSU
- Feb 20
- 3 min read
Updated: Feb 26
Jiyeon Kim, Alejandro Plastina, Marc Rosenbohm, and Sandro Steinbach
This white paper/policy brief provides preliminary estimates of the economic assistance payments for North Dakota crop producers approved by U.S. Congress on December 20, 2024, as part of the American Relief Act of 2025.
North Dakota farmers are set to receive $597 million in economic assistance as part of the American Relief Act of 2025, a federal relief package designed to mitigate economic losses in the agricultural sector. Signed into law on December 20, 2024, the Act allocates $10 billion in aid to crop producers nationwide while also extending the 2018 Farm Bill through September 2025.
The Center for Agricultural Policy and Trade Studies (CAPTS) at North Dakota State University, in collaboration with the Rural and Farm Finance Policy Analysis Center (RaFF) at the University of Missouri, has released a white paper detailing how these funds will be distributed across North Dakota. The report, authored by Jiyeon Kim, Alejandro Plastina, Marc Rosenbohm, and Sandro Steinbach, provides preliminary payment estimates based on economic losses for eligible crops and acres.
The relief package is designed to provide financial support to farmers who have faced significant economic challenges. Payments will be allocated based on crop-specific economic losses and reference price calculations. Economic assistance is determined either as 26 percent of the economic loss per crop or a minimum rate tied to statutory reference prices and national average yields. Eligible acres include all planted acres for harvest, grazing, haying, or silage in 2024, as well as 50 percent of prevented planted acres. Payment caps are set at either $125,000 or $250,000, depending on whether more than 75 percent of a producer’s income is derived from farming.
North Dakota farmers will receive a projected $597 million in total assistance, with the majority of payments going to wheat, soybean, and corn producers. Wheat and soybeans account for 66 percent of the total aid, highlighting their critical role in the state’s agricultural economy. Corn producers will receive 29 percent of the allocated payments. The top ten counties expected to benefit the most from the program include Cass, Stutsman, Richland, Barnes, LaMoure, McLean, Ward, Bottineau, Wells, and Cavalier, which together will receive 34 percent of the total state assistance.
Economic losses and payment rates were calculated using data from the USDA Economic Research Service, the Farm Service Agency (FSA), and the World Agricultural Supply and Demand Estimates (WASDE). These projections were developed using reported acreage data from the FSA as of December 2, 2024. The final distribution of funds will depend on USDA determinations, which may result in minor adjustments to the projected payments.
Jiyeon Kim, a researcher at CAPTS, emphasized the importance of this relief package, stating that the projected assistance is a "lifeline for North Dakota farmers who have faced significant economic challenges in recent years." Sandro Steinbach, also from CAPTS, reinforced this message by highlighting how federal programs play a critical role in supporting rural communities and ensuring the stability of farm incomes.
A key figure from the CAPTS white paper illustrates the projected economic assistance by county in North Dakota. The map highlights the geographical distribution of payments across the state, showing that the highest assistance is concentrated in counties with extensive crop production and prevented planting acres.
 |
Figure 1. Total Projected Economic Assistance to Selected Crop Producers by County |
Note. The crops included in the analysis are barley, corn, oats, peanuts, grain sorghum, soybeans, and wheat. |
