Stay Informed

As its nickname implies, H.R.1, the One Big Beautiful Bill Act (OBBB), addresses many issues. But among the many things it does is reauthorize the farm bill’s nondiscretionary spending provisions, updating and funding many core agriculture titles.

According to the nonpartisan Congressional Budget Office, the final version of the act is projected to increase agriculture-focused spending by approximately $65.6 billion over the next decade (fiscal year 2025–fiscal year 2034).

“Congress has passed our farm bill priorities even without passing a farm bill,” said Brantley Seifers, Indiana Farm Bureau national affairs director. “There are still some programs left to go, but we’re pleased with what we have so far.”

Signed into law by President Trump on July 4, the act’s important provisions include extending key commodity support programs – including Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC), marketing assistance loans and Dairy Margin Coverage (DMC) – through the 2031 crop year.

The bill makes several significant updates to strengthen and modernize the crop insurance program through 2031, according to the American Farm Bureau Federation. It increases premium support for beginning farmers and ranchers by expanding the U.S. Department of Agriculture’s definition from five to 10 years of experience, enabling more producers to qualify for assistance over a longer period.

In addition, the bill makes numerous changes and improvements in the commodity programs, including:

• Raising statutory reference prices (also known as price guarantees) for major covered commodities by 11-21%.
• Adjusting the effective reference price escalator for PLC from 85% to 88% of the Olympic average (an average that excludes the highest and lowest values from a set of years) of past prices, providing a modest increase in price support as market conditions warrant.
• Improving the ARC program by increasing the revenue guarantee from 86% to 90% and raising the maximum payment from 10% to 12% of benchmark revenue starting with the 2025 crop year.
• Enabling program participants to receive either ARC or PLC payments – whichever is higher.

Trade was also addressed by the bill, which provides $285 million per year for a new Ag Trade Promotion and Facilitation Program.

Another key set of provisions in the bill are extensions for some sections of the Tax Cuts and Jobs Act (TCJA) that are of particular importance to Farm Bureau:

• Estate tax – Permanently raises the exemption to $15 million per individual.
• Section 199A – The 20% deduction is made permanent.
• Capital expensing – Raises the Section 179 threshold to $2.5 million and makes the 100% bonus depreciation permanent.
• Clean fuels – Extends 45Z credit through 2029 and limits credit to fuels produced using North American feedstocks.

While these provisions will provide some much-needed certainty for our members, the job’s not done, Seifers said. Still waiting on a farm bill is reauthorization and funding for the Conservation Reserve Program, support for rural broadband programs in the rural development title, and support for additional research and extension programs.

Seifers added that Farm Bureau is also hoping for a fix to Proposition 12, which bans the sale of pork, veal and eggs from livestock whose confinement does not meet specific minimum space rules, even if the animals were raised on farms outside of the state.

Full analysis of the OBBB Act by AFBF economists can be found at fb.fb.org/market-intel. AFBF is also planning on outlining what’s left to be done in a later article.