Farms.com Home  › News

Sanders Announces Income Tax Exemptions for Farmers’ Disaster and Relief Payments

Governor Sarah Huckabee Sanders today announced important income tax exemptions for farmers receiving federal assistance through United States Department of Agriculture (USDA) disaster and relief programs. These exemptions were authorized through Act 696, signed by Governor Sanders in 2025, as well as longstanding provisions of Arkansas law, ensuring farmers and ranchers are not taxed on critical relief funds.

“There is no denying that Arkansas’ agricultural producers are enduring one of the most difficult seasons in modern memory. That’s why my administration is ensuring that recovering farmers don’t have to pay a huge tax bill on top of their other hardships,” said Governor Sanders. “Not only do these exemptions provide immediate relief to our hardworking farmers and ranchers, but they also help bolster Arkansas’ number one industry.
In a letter to Arkansas Department of Agriculture Secretary Wes Ward, Arkansas Department of Finance and Administration Secretary Jim Hudson confirmed that both Emergency Commodity Assistance Program (ECAP) and Emergency Livestock Relief Program (ELRP) payments qualify for state income tax exemption for applicable tax years, ensuring clarity for Arkansas producers as they prepare for the upcoming filing season.

Source : arkansas.gov

Trending Video

Bigger Corn Yield Pressures Grain; Local Food Reaches School Lunch Trays

Video: Bigger Corn Yield Pressures Grain; Local Food Reaches School Lunch Trays

USDA raised corn and soybean yield estimates above trade expectations, sending grain futures sharply lower. Ahead of National School Lunch Week, one Iowa district shows how local farms and food hubs are helping supply school cafeterias — and the costs and logistics involved. Naomi Blohm and Ted Seifried break down the report and what it means for grain markets.