In Connecticut, farmers can get a 20 percent tax credit on some farm expenditures
The start of the new year brings with it new laws taking effect.
With that at top of mind, here’s a rundown of some state ag laws that go into effect on Jan. 1, 2026.
In Arkansas, HB 1594 created a new Farmer Sales Tax Identification Card system.
The system helps eligible farmers receive tax exemptions more easily by presenting the card when making qualifying purchases instead of a traditional exemption certificate.
A qualifying purchase is defined as items used for the commercial production of food, fiber, grass sod, or nursery products.
The new cards will cost $20 each and will be valid for eight years. A renewal costs $10.
A law in Connecticut also provides tax breaks to farmers.
As of Jan. 1, eligible producers can receive a 20 percent investment tax credit on equipment and buildings purchased on or after that date. In addition, Public Act 25-152 raises property tax exemptions for farmers to $250,000.
Illinois has a new law coming into effect poultry producers should be aware of.
HB 2196, for example, expands on-farm poultry processing for small farmers from 5,000 to 7,500 birds annually, and allows small and mid-sized operations to increase operations without federal or state inspection.
One state is increasing its agricultural minimum wage.
In New Jersey, the minimum wage for agriculture workers is going from $13.40 to $14.20 per hour.
And multiple states are increasing general minimum wages.
In total, workers in 19 states will see a jump in minimum wage beginning Jan. 1, 2026, including:
- Michigan - $13.73
- Colorado - $15.16
- Nebraska - $15.00
- Washington - $17.13
- Ohio - $11.00