By Jamie Martin
Farmers are set to benefit from a new federal bill that strengthens safety nets and makes business tax cuts permanent. The House passed the legislation with a close 218-214 vote.
The bill adds $68.3 billion over 10 years for farmer support. It updates crop insurance, increases payment limits, and allows the addition of 30 million new base acres.
Commodities like cotton, rice, and peanuts see higher gains than corn and soybeans. Insurance programs will receive $6.3 billion more, with improved premium subsidies and new coverage for poultry.
The Dairy Margin Coverage increases support for milk producers, and livestock farmers will receive better compensation for losses. Trade support is also rising, with USDA trade promotion funding doubled.
On the tax front, farmers gain permanent access to a 20% deduction for qualified business income. Equipment purchases qualify for 100% bonus depreciation, and Section 179 deduction rises to $2.5 million.
A new provision allows farmland capital gains to be paid in four annual installments.
Biofuel producers will benefit from an extended 45Z credit, with a top rate of $1 per gallon. A new rule favors feedstocks from the U.S., Canada, and Mexico, excluding China.
The bill has faced criticism over $185 billion in SNAP cuts and $1.1 trillion in Medicaid reductions. Work requirements are tougher, and states must share more program costs. Rural hospitals may be affected, despite a $50 billion relief fund.
House Speaker Mike Johnson said, “With the One Big Beautiful Bill, we are going to make the country stronger, safer and more prosperous than ever before and every American is going to benefit from that.”
Despite the controversy, the bill marks a major shift in farm policy and rural tax benefits.
Categories: National