WASHINGTON — It appears brighter days are ahead for U.S. farmers after the U.S. House passed the “One Big, Beautiful Bill” (OBBB)” Thursday and sent the mammoth, 1,000-page document to President Trump’s desk for his signature.

Advocates of the legislation, which passed on a 218-214 vote, believe it will provide American farmers with tax certainty, reference price adjustments and other initiatives after grappling with high input costs, sagging markets, delayed disaster funding and high interest rates in recent years.

The bill makes the expiring provisions from the 2017 Tax Cuts and Jobs Act permanent. It also includes increases to Farm Bill safety net programs and new investments in trade promotion, agricultural research and disaster assistance.

Trade promotion is another area addressed. Some $285 million in mandatory funding is authorized for the USDA to conduct a program to encourage, “the accessibility, development, maintenance and expansion of commercial export markets for U.S. agricultural commodities,” effective the 2027 fiscal year. 

Funding for the Specialty Crop Research Initiative will see $175 million in mandatory funding for fiscal year 2026. It’s currently funded at $80 million for each fiscal year.

American Farm Bureau Federation President Zippy Duvall noted the U.S. has lost more than 141,000 farms in the last 5 years and the OBBB legislation was needed to provide stability. 

“Modernizing important farm safety net programs and making permanent critical tax provisions could be the difference between staying in business or shutting down the family farm,” Duvall said Tuesday. 

“More than half of farmers are losing money, so an increase in reference prices is desperately needed, and tax tools will help farmers and ranchers plan for the next season and the next generation.”

Glenn “GT” Thompson (R-PA), who chairs the House Agriculture Committee, said the bill adds base acres for farmers who’ve not been eligible for it, and modernized the Dairy Margin Coverage program. The package also increases funding for the Price Loss Coverage (PLC) program and reduces crop insurance premiums.

Another key provision of the bill is locking in the 45Z Clean Fuel Production Credit until 2029.  The American Soybean Assn. said that, and other aspects of the legislation, are key for farmers and were ASA priorities.

“At a time of great uncertainty for the agriculture economy, the support of Congress to enhance key programs and vital domestic markets for our farmers is critical,” said ASA President Caleb Ragland, a Kentucky soybean grower. “ASA thanks the House for maintaining several crucial farm programs and tax provisions that support U.S. soybean growers.”

The nation’s leading biofuel trade association, Growth Energy, said the legislation will help the U.S. “go big” on American energy dominance.  “An extension of 45Z will unlock billions of dollars in new investments across rural America supporting strong, stable markets for America’s farmers and positioning American biofuel producers to compete in global fuel markets,” said Emily Skor, CEO of Growth Energy. 

In a recent appearance on Fox News Business, USDA Secretary Brooke Rollins said the bill’s passage means farms will no longer be subject to the death tax, which will be key to “keeping farms in the family and out of the hands of the Chinese and foreign ownership. “This is game changing for farmers and all of America,” she said.

The OBBB, Rollins said, cuts taxes for farmers by over $10 billion and prevents the death tax from hitting 2 million family-owned farms that would otherwise see their exemptions cut in half.

The bill also helps the 98% of farming operations taxed according to their owners' individual tax rate by protecting the small business deduction. 

“Because the agricultural industry leverages one-fifth of all small business deductions across the American economy, the OBBB's doubling of Section 179 deductions to $2.5 million will provide major relief for farming operations across the country,” Rollins said in a recent op-ed. 

“The extension of the Section 199A Qualified Business Income Deduction will also save farmers thousands of dollars every year.”

The bill also makes investments in farm bill conservation and trade programs. 

Based on the latest information available, OBBB reauthorizes the Agriculture Conservation Easement Program (ACEP), the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), the Rural Conservation Partnership Program (RCPP) and Watershed and Flood Prevention Operations Program.