Extending the Trump tax cuts will be a critical lifeline to American farmers, whose livelihoods rely on provisions for family-owned and small businesses like the small business deduction, relief from the death tax, and the doubled standard deduction and would suffer greatly should those tax cuts expire and their tax burden increase dramatically. Under The One, Big, Beautiful Bill, family farmers and ranchers will benefit from a permanent small business deduction increased to 23 percent as well as a permanently expanded death tax exemption, 100 percent immediate expensing, increased small business expensing, immediate expensing for new production facilities which will allow farmers to invest in the growth of their operations, and greater flexibility at securing farming loans at lower cost.
During Ways and Means field hearings and the Committee’s Tax Team events across the country, witnesses and stakeholders made clear that an America First economic policy means extending these tax cuts as soon as possible. In the United States, 96 percent of the nation’s 2 million farms are family-owned, and 88 percent are small family farms.
Ways and Means Committee Chairman Jason Smith (MO-08) said:
"Just like other small businesses, farmers need certainty that their tax burden will not be escalating at the end of the year. They have to plan for the future and prepare for how they will operate, what equipment to invest in, and whether they can afford to pass along their business to the next generation. I grew up in a small farming community in Missouri and I raise cattle on my family farm. Farming is already one of the most difficult callings, yet farmers get up early every day to feed America. The One, Big, Beautiful Bill cuts taxes, stops a looming and potentially devastating tax increase, and helps more farmers pass on the farm intact to the next generation.”
READ: At Iowa State Fair, Americans Share the Benefits of Pro-Growth, Pro-Family, Pro-Farmer, Pro-Small Business Trump Tax Cuts
Here are key provisions helping American farmers:
Making Farm Equipment Affordable: Immediate expensing helps farmers afford the equipment needed to operate and turn a profit. As such expensing phases out, farmers have a harder time purchasing equipment. The One, Big, Beautiful Bill renews immediate expensing and expands small business expensing to help farmers and other small businesses replace broken equipment, like a broken combine in the case of one Iowa farmer.
Source : house.gov