Ag News

House-passed reconciliation bill could benefit farmers

On May 22, the U.S. House of Representatives passed H.R. 1, the One Big Beautiful Bill Act, a sweeping bill that focuses on tax reform, border security and a variety of other policy changes.

The bill passed by a 215-214 margin, with one member voting present and two others not voting. All nine of Georgia’s Republican representatives voted for passage. The bill awaits consideration in the Senate.

The bill includes what the American Farm Bureau Federation is calling a modernization of the 2018 farm bill, extending and improving tax provisions that benefit small farmers and ranchers.

Among the tax provisions are the Section 199A small business tax deductions, which the bill would make permanent, and an extension of the current estate tax exemption. The bill also continues Agricultural Risk Coverage (ARC), Price Loss Coverage (PLC) and the Dairy Margin Program (DMP) until 2031 and updates crop insurance reference prices.

“Updated reference prices will provide more certainty for farmers struggling through tough economic times,” AFBF President Zippy Duvall said. “Making business tax deductions permanent and continuing current estate tax exemptions will ensure thousands of families will be able to pass their farms to the next generation.”

According to the National Agricultural Law Center, the reference price increases in the bill fall between 10% and 20% and vary by commodity. In 2031, the reference prices would begin increasing by 0.5% annually to offset future inflation. The bill would cut spending in the Supplemental Nutrition Assistance Program (SNAP) by $290 billion and require states to pay between 5% and 25% of SNAP benefit costs beginning in 2028. The SNAP eligibility standards would be updated with new work requirements for able-bodied adults with children aged 7 or older. Current rules call for parents with children 18 or older to work 20 hours per week to remain eligible for SNAP benefits.

The bill would also require states to pay at least 5% possibly up to 25% of SNAP benefit costs starting in 2028.

A summary of the bill is available here.

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