By Scout Nelson
A new analysis by Andrew Keller, a senior researcher at North Dakota State University’s Agricultural Risk Policy Center, outlines how the One Big Beautiful Bill (OBBB)—signed into law in July 2025—creates long-term benefits for farmers and rural families.
One of the bill’s most important actions is preventing the 2026 end of the 2017 Tax Cuts and Jobs Act. By doing this, OBBB keeps lower tax rates and introduces new, farmer-friendly changes that help support investments and ease the transition of farms between generations.
Keller’s review highlights several key tax updates:
- Permanent lower individual tax rates and a higher standard deduction
- An enhanced Child Tax Credit and new deductions for senior citizens
- The return of 100% bonus depreciation, encouraging modern equipment purchases
- A permanent 20% Qualified Business Income (QBI) deduction, helping sole proprietorships, partnerships, and S corporations
- A boosted estate and gift tax exemption of $15 million per person, adjusted yearly for inflation
Farmers will benefit most from the bonus depreciation and QBI provisions. These changes lower the cost of replacing old machinery and give financial relief to most farm businesses organized as pass-through entities.
The increase in estate tax exemption is another major win, allowing farms to remain in the family without heavy tax burdens. This supports smooth farm transfers between generations and helps keep rural communities strong.
Photo Credit: gettyimages-stockseller_ukr
Categories: North Dakota, Government & Policy