Tax Changes in the Big Beautiful Bill: What Farmers Need to Know

Jan 23, 2026

By Samantha Gehrett

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, marks one of the most comprehensive tax reforms in decades. For farmers and ranchers, this legislation isn't just political news; it's a practical guide for shaping financial decisions, succession planning, and long-term investments. Below, we break down the key provisions that matter most to agricultural producers and explain how they fit together.

A New Era for Farm Investment: Section 179 and Bonus Depreciation

Among the most farmer-friendly changes in OBBBA are the expansion of Section 179 expensing and the restoration of 100% bonus depreciation. These provisions allow producers to deduct the full cost of qualifying property in the year it's placed in service, rather than spreading deductions over several years.

Section 179 deduction rises to $2.5 million, with a phase-out threshold of $4 million.
Bonus depreciation is restored to 100% for qualified property placed in service after January 19, 2025, through 2030.

For farmers, this is a game-changer. For example, if you purchased a $500,000 combine in 2025—you can deduct the entire amount in the first year, freeing up cash flow for other operational needs.

Source : psu.edu

Video: When is Sustainable Packaging Coming in the Canadian Agri Food Industry? 3 Critical Perspectives

Canada’s regulatory landscape on single-use plastics is complex but a recent ruling by the Federal Court of Appeal sided with the government’s intent to eliminate single-use plastics. What does this mean for the Canadian agri-food industry? How can companies find the right balance between regulatory compliance and implementing costly alternative solutions? What are retailers and consumers saying about sustainable packaging? This webinar features Joshua Goodman, Head of Corporate Sustainability, Sobeys; Marie-Anne Champoux-Guimond, Director of Sustainability, Keurig Dr Pepper Canada and Glenford Jameson, Canadian Food Lawyer, G.S. Jameson and Company

This 60-minute webinar brings together three industry leaders to examine the opportunities, challenges, and realities of the path forward. In this session, you will gain insights into:

•Canada’s regulatory roadmap and timeline on eliminating single-use plastics

•Current end-of-life solutions for plastics and alternative packaging solutions

•The need to have a corporate strategy that aligns with reality at the retail shelves

•How major brands and retailers are pivoting

•Supply chain considerations

•Common misconceptions