New Legislation Boosts Farm Aid and Business Tax Benefits
The “One Big Beautiful Bill” brings major changes for U.S. farmers and rural communities. Passed narrowly by the House, it includes $68.3 billion for farm support and $4.5 trillion in tax relief.
The bill raises payment caps from $125,000 to $155,000 and eliminates income caps for farmers earning 75% or more from agriculture. It also updates reference prices and allows 30 million new base acres for support.
Crop insurance receives $6.3 billion in additional funding, with stronger subsidies and new coverage for poultry. Livestock producers get full payments for predation losses and partial coverage for weather and disease-related deaths.
Dairy coverage increases for milk producers, and trade support doubles. For biofuels, a revised 45Z tax credit benefits U.S., Canada, and Mexico feedstocks. The estate tax exemption also rises to $15 million per individual in 2026.
Permanent tax benefits include a 20% business income deduction and improved depreciation allowances for farm equipment and buildings. Farmland capital gains taxes can now be paid in four parts if certain conditions are met.
Despite benefits to agriculture, the bill faces backlash for cutting $185 billion from SNAP and $1.1 trillion from Medicaid. These cuts add work requirements and shift costs to states, possibly reducing healthcare and food aid access.
The bill tries to ease rural healthcare stress with $50 billion in relief for hospitals. But closures, like the one in Curtis, Nebraska, reflect concerns about the future.
House Speaker Mike Johnson said, “With the One Big Beautiful Bill, we are going to make the country stronger, safer and more prosperous than ever before and every American is going to benefit from that.”
The bill’s impact will reshape farm programs and rural economies nationwide.