One Big Beautiful Bill Act Tax Provisions Important for Farms and Agriculture

Aug 11, 2025

By Barry Ward and Jeff Lewis J.D.

The One Big Beautiful Bill (OBBB) Act (H.R. 1), was passed, signed and became law on July 4th. This Act impacts taxes and agricultural policy among a long list of other important issues. In this post, we list important tax provisions that were included in this legislation. Many of the provisions were law as a part of the Tax Cuts and Jobs Act and were extended and in some cases made permanent by this new Act. There were also a few new provisions that were included in this new legislation. This article will summarize the provisions that should prove to be most important to farmers and others with ag interests.

Qualified Business Income Deduction

The 20 percent Qualified Business Income Deduction (QBID) for sole proprietors and pass-through businesses under I.R.C. § 199A is made permanent by this Act. This includes the I.R.C. § 199A(g) deduction for agricultural cooperatives and their patrons.

This new legislation includes a new minimum $400 deduction for taxpayers with at least $1,000 in “active” qualified business income. Both amounts will be adjusted annually for inflation.

Estate and Gift Tax Exemption

This Act permanently increases the estate and gift tax exemption (basic exclusion or Unified Credit), beginning in 2026, to $15 million per person, indexed for inflation.

Source : osu.edu

Video: Food Inflation and Pork Demand - Dr. Sylvain Charlebois

In this episode of The Swine it Podcast Show Canada, Dr. Sylvain Charlebois, Professor and Director of the Agri-Food Analytics Lab at Dalhousie University, discusses how food inflation is reshaping Canadian protein demand. He explains why pork remains competitively priced, consumer behavior, and why transparency, AI-assisted shopping, and protein demand will matter in the years ahead. Listen now on all major platforms!

"The potential of pork is there. We just need to see the product assume that role and take it away because all the elements are there."

Meet the guest: Dr. Sylvain Charlebois is a Professor in Dalhousie University's Faculty of Management and Director of the Agri-Food Analytics Lab. His research focuses on food distribution, food policy, food safety, food security, and traceability. Dr. Charlebois has written four books and more than 500 peer-reviewed and scientific articles. He holds a BComm from the Royal Military College, an MBA from UQAM, and a DBA from the University of Sherbrooke. Learn more from Dr. Sylvain Charlebois on The Swine it Podcast Show Canada, available on all major platforms.