Agriculture and the One Big Beautiful Bill: Shaping Farmers' Future

Wake up in the morning, check your phone, turn on the news, or open your computer and there is a good chance a headline about the Trump Administration will be one of the first things you see. An umbrella policy that has made national headlines many times is the One Big Beautiful Bill. The One Big Beautiful Bill was signed into law July 4th, 2025. It encompasses reducing "taxes, reduc[ing] or increas[ing] spending for various federal programs, increas[ing] the statutory debt limit, and otherwise address[ing] agencies and programs throughout the federal government" (Congress, 2025). Those in the agricultural sector in particular have been affected in multiple ways: expanding funding for some, cutting funding for others, securing Farm Bureau provisions and so much more. Staying informed about the act and its consequences is an excellent way to help preserve the future of your agricultural business.

Although this bill is not a complete farm bill it is still covers many elements and places them together in one. The NCLS views this act for farmers as "a 'mini-farm bill' because its key agricultural policy provisions address the issues typically covered in a traditional farm bill: commodities, crop insurance, conservation and nutrition" (Bland, 2025). The monetary expenses to cover this are quite large. Over 65 billion dollars is to go towards increasing agriculturally based spending in the next decade. (Munch, 2025).

American Farm Bureau Allocation Pie

As we can see from the pie 59 billion plans to be allocated towards Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC), Dairy Margin Coverage (DMC), and crop insurance. This a massive safety net for farmers and ranchers, especially with the economic uncertainty all of agriculture is facing right now. The other 15 billion will be allocated to programs such as conservation, forestry, research, trade, plus some more!

Commodity Support

ARC, PLC, and DMC all have a plan in the bill to be extended until 2031 and it raises price reference prices for major commodities by 10-21 percent. These prices will compound by 0.5% annually with a cap rate of 113% (Munch, 2025). The bill also extends marketing loan assistance programs through 2031 and updates loan rates for major commodities.

The USDA has now changed to incorporate the new business structures any farms have changed to. For example, entities such as LLC's or S corporations "are treated equitably when it comes to payment eligibility and attribution" (Munch, 2025). Farmers who earn 75% of their income from farms or ranchers are also no longer exempt from income-based programs with income limits. These new structures help farmers and ranchers survive within the new times. No longer is it a one size fits all answer.

Crop Insurance

The One Big Beautiful Bill made many updates to strengthen the bill in its entirety. For those beginning in farming and ranching this statement now encompasses those with up to 10 years of experience. Increasing the amount of producers able to receive assistance and increase the duration of that assistance. Dual enrollment of coverage plans is now possible as well. Those enrolled in Price Loss Coverage may now also enroll in Supplemental Coverage Option. Additionally, "the maximum coverage level for area-based insurance plans is also increased to 95%, and the premium subsidy for those plans is raised from 65% to 80%" (Munch, 2025). Overall, the new crop insurance allows for more coverage, more affordability, and more accessibility.

The Whitehouse on What Farmers Are Celebrating

"Farmers have specifically celebrated how the bill overhauls the ‘death tax’ — the taxes imposed by the federal and some state governments on someone’s estate upon death"

The death tax can be a large stressor for many families. By relieving this stress, it allows farming and ranching families to focus on what really matters, cultivating, growing, and raising crops and livestock. Estate tax exemption is now set at 15 million per person and 30 million per couple. These hardworking Americans get to continue to build a legacy that next generations will have the privilege of continuing. The peace of mind from significant changes in the death tax is life changing for many.

Conservation

Conservation has a place in the pie as well. The bill is redirecting funds from the Inflation Reduction Act to "agriculture programs such as the Environmental Quality Incentives Program and the Conservation Stewardship Program" (Bland, 2025). Additional funding is also being given to the Agriculture Conservation Easement Program and the Feral Swine Eradication and Control Pilot Program. Although it seems like more money is being allocated to conservation efforts than before it is actually quite the opposite. The NCLS reported "total conservation spending is estimated the nonpartisan Taxpayers for Common Sense to decrease by over $1 billion through 2034" (Bland, 2025).

Staying informed on policy changes to get the most out of the benefits offered, adjusting to new changes, and advocating for the programs your agricultural business needs the most is crucial. Continue to talk local producers, FSA agents, crop insurance agents, and others within the industry to stay on top of all updates. Keeping operations going now means more than working with our hands, increasing knowledge, and using our voice is necessary to thrive in the ever-changing agricultural landscape.

References:

119th Congress. (2025, July 4). H.R.1 - 119th Congress (2025-2026): One big beautiful bill act | congress.gov | library of Congress. H.R.1 - One Big Beautiful Bill Act. https://www.congress.gov/bill/119th-congress/house-bill/1

Bland, M., & Kallins, L. (2025, July 21). How the federal reconciliation bill will affect farms and food policy. https://www.ncsl.org/state-legislatures-news/details/how-the-federal-reconciliation-bill-will-affect-farms-and-food-policy

Munch, D., Ayoub, S., & Parum, F. (2025, July 17). One big beautiful bill act: Final agricultural provisions. American Farm Bureau Federation. https://www.fb.org/market-intel/one-big-beautiful-bill-act-final-agricultural-provisions

The United States Government. (2025, July 7). President Trump’s One big beautiful bill: A win for workers, farmers, and America’s future. The White House. https://www.whitehouse.gov/articles/2025/07/president-trumps-one-big-beautiful-bill-a-win-for-workers-farmers-and-americas-future/