Record federal farm program payments are raising questions about whether the farm safety net is doing enough to keep producers financially stable.

The USDA says Agriculture Risk Coverage and Price Loss Coverage programs are providing a record $13.8 billion in gross payments, the largest annual payout since the programs were created in the 2014 Farm Bill.

University of Nebraska-Lincoln’s Brad Lubben says higher reference prices are boosting payments, but rising production costs continue to squeeze profit margins. He says additional farm income can also drive up land prices and rents, and the safety net should be considered alongside crop insurance and other federal assistance.

David Widmar with Ag Economic Insights reminds producers that many payments are tied to last year’s production and cautions against making major purchases or adding expenses based on a temporary income increase.

Both economists encourage farmers to prepare for best- and worst-case financial scenarios.