Congress Must Act to Extend Tax Provisions
Samantha Ayoub
Associate Economist
Chad Smith
Associate News Service Editor, NAFB
photo credit: Florida Farm Bureau, Used with Permission
Samantha Ayoub
Associate Economist
Chad Smith
Associate News Service Editor, NAFB
Farmers and ranchers will face a significant increase in taxes this year if Congress fails to act. Chad Smith has details.
Smith: The Tax Cuts and Jobs Act is set to expire at the end of 2025. If it’s not renewed, farmers and ranchers will face significant tax hikes. Samantha Ayoub (aye-OOB), an associate economist with the American Farm Bureau Federation, says letting these provisions expire puts farmers at risk.
Ayoub: At the end of the day, taxes are an expense. We already see farmers and ranchers across the country suffering from above-average input expenses across the board, and if taxes were to increase next year, that is just another hit to the expenses on a balance sheet that is already struggling.
Smith: Ayoub says several provisions in the Tax Cuts and Jobs Act were designed to boost economic activity and encourage investments.
Ayoub: If taxes increase, that takes out dollars that farmers can then invest back into their business and back into their community. EY, a consulting firm, estimates that expiration of TCJA provisions would lead to agriculture alone losing 49,000 jobs, which is $3 billion in wages that then can trickle out to $10 billion of economic activity.
Smith: She says some progress has been made on making these provisions permanent, but there’s more work to do.
Ayoub: We've seen the reconciliation package, the one big, beautiful bill, passed the House, and it provided permanency, which is ultimately certainty, and improved upon a lot of the provisions that are important to farmers and ranchers. That is obviously not a completed process. It's important that those provisions that were kept in [the] House [version] continue into the Senate.
Smith:Learn more on the Market Intel page at fb.org. Chad Smith, Washington.
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