Farmers are among the biggest winners in the $4.5 trillion “One Big Beautiful Bill,” which passed the House on Thursday and is now headed to President Donald Trump’s desk. The sweeping budget reconciliation package adds up to $68.3 billion over 10 years for farmer programs, significantly expanding support after years under the 2018 farm bill.
The bill passed the House 218-214, with two Republicans joining Democrats in opposition. The vote followed a tense standoff among conservatives, delaying final action until early Thursday morning. Despite the political wrangling, the bill marks a major legislative victory for Trump. He’s expected to kick off a victory tour Thursday night in Des Moines.
Partisan Divide
On the House floor, Republicans hailed the bill’s tax cuts and farm provisions. Democrats sharply criticized the deep cuts to Medicaid and SNAP, saying the bill benefits the wealthy at the expense of vulnerable Americans.
House Minority Leader Hakeem Jeffries, D-N.Y., gave an eight-hour speech, calling the bill “an unprecedented assault on the American people.” He cited even GOP-led states like Louisiana that oppose the Medicaid cuts. House Ways & Means Chairman Jason Smith, R-Mo., dismissed Jeffries’ comments as “eight hours of hogwash.”
Just before the vote, House Speaker Mike Johnson, R-La., called the bill “a historic turning point,” promising it would make the U.S. stronger and more prosperous.
Farm Bill Boosts
Sen. John Hoeven, R-N.D., said the bill effectively acts as a seven-year farm bill extension, increasing support in several key areas:
- Crop Insurance: An additional $6.3 billion will go toward enhancing crop insurance, especially area-based plans and new subsidies for beginning farmers. A pilot program for poultry insurance is also included.
- Reference Prices: The bill raises reference prices for the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs, with USDA directed to apply higher rates for this crop year.
- Payment Limits: Limits rise from $125,000 to $155,000 for individuals, and to $310,000 for couples, with further adjustments for inflation. Income caps are removed for those earning at least 75% from agriculture or forestry.
- Base Acres: USDA may add up to 30 million new base acres, based on planting history from 2019 to 2023. However, farmers cannot reallocate current base acres.
- Livestock Aid: The bill provides 100% indemnities for livestock lost to predators and 75% for weather or disease-related losses, including unborn animals.
- Dairy Support: Dairy Margin Coverage is extended to protect up to 6 million pounds of milk.
- Trade: Funding for USDA’s trade promotion programs will be doubled.
Tax Cuts for Farmers and Rural Business
The bill includes broad tax relief for farmers and rural businesses:
- A 20% deduction for qualified business income is made permanent.
- 100% bonus depreciation for equipment purchases becomes permanent and is expanded to nonresidential property like ag processing plants.
- The Section 179 deduction rises to $2.5 million for businesses spending up to $4 million on equipment.
- A new provision allows capital gains from farmland sales to qualified farmers to be paid in four annual installments, provided the land stays in ag production.
- Estate tax exemptions increase to $15 million per individual and $30 million per couple starting in 2026.
- Rural bankers receive a 25% deduction on interest income from qualifying rural real estate loans.
The Congressional Budget Office projects the bill will increase the national debt by $3.4 trillion over the next decade, even with $1.2 trillion in spending cuts.
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DTN – 2025
