A Step Toward Certainty

Farming is an uncertain business. Every year, farmers plant crops or raise animals not knowing how the weather will impact them or what the markets will be when it’s time to harvest or sell their livestock. Farmers and ranchers received some certainty, however, with the passage of the One Big Beautiful Bill Act. The bill, advanced through a process known as reconciliation, which allows for expedited consideration of budget-related policy, delivers updates to farm programs and makes permanent important tax provisions that will help farmers hold on in tough times and plan with greater confidence for the future.

For far too long, farmers have faced outdated safety net programs that no longer reflect the realities of our farm economy, and we continue to see the consolidation and loss of farmland. We lost 15,000 farms in 2024 alone, and we need modernized programs to ensure that more farmers are not faced with making the decision to close their doors.

Certainty inFarm Programs

The farm programs outlined in the 2018 farm bill addressed the needs of farmers when it was passed, and we were thankful for the short-term relief Congress provided through the past two extensions of the farm bill. But, since Congress last passed a farm bill, we have had a global pandemic, global unrest, high inflation and trade disputes. With rising expenses and falling farm income, our farm programs are outdated and have left many farmers unable to utilize the tools and safety nets crafted to protect them. The One Big Beautiful Bill Act secures a big win for farm programs with updated reference prices – ones that will adjust for inflation – as well as investments in conservation, research and trade. There are limits to what can be done in reconciliation, and we still need to finish the job with a farm bill reauthorization to provide the long-term certainty our farmers need, but the One Big Beautiful Bill Act is an important stepforward.

Certainty in Tax Reform

The package that is now law provides certainty with tax reform, making improvements and making permanent tax provisions that were set to expire this year. Taxes can make or break a farmer’s check book, and they rely on tax provisions designed to reduce small business tax burdens and promote investment to keep their farm running. If we didn’t see tax reform passed this year, our farm families would have been hit with billions of dollars in taxes and many of them may not have been able to survive the cost. The One Big Beautiful Bill Act includes a permanent increase to the 199A deduction, a nearly tripled estate tax exemption, permanent lowered individual tax rates and a permanent bonus depreciation (expensing) extension. Farmers are always planning ahead – both for next season and the next generation – and having these critical tax provisions will help bring confidence when making future decisions.

Certainty in Agriculture

This bill included a few other wins for our farmers and small business owners including the limiting of the 45Z tax credit to only biofuels produced by domestic feedstocks. Renewable fuels have been a major success story for our rural communities, and this legislative package will continue to strengthen that success.

The wins in farm programs and tax policy within the One Big Beautiful Bill Act all closely align with Farm Bureau’s grassroots policy, and I want to say thank you to all our grassroots leaders who remained engaged and helped ensure the inclusion of our priorities. We still have much to accomplish ahead when it comes to the certainty our farmers need, but the reconciliation package is another example of how strong we are as the United Voice of Agriculture and shows that together we can get it done.