OBBBA Brings Policy Wins for Farmers and Ranchers

The One Big Beautiful Bill (OBBBA), signed into law in July, includes a series of changes to strengthen farm safety nets, lower costs, and expand long-term support for American farmers and ranchers.

Among the most significant changes are updates to crop insurance, a risk management tool for producers facing weather and market volatility. The bill expands premium support for beginning farmers and ranchers by raising the eligibility requirement from 5 years of experience to 10. This will allow more producers to qualify for assistance for an extended period. The changes are expected to generate more than $400 million in annual savings on crop insurance premiums nationwide.

The bill also raises statutory reference prices for the first time in over a decade. Reference prices for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs increased by 10% to 21% for major crops, including corn, soybeans, and wheat. In addition, the U.S. Department of Agriculture (USDA) is expanding eligibility for these price support programs by adding more than thirty million new base acres, making them eligible for future ARC or PLC payments beginning with the 2026 crop year.

Marketing assistance loan programs were extended through 2031, with updated loan rates scheduled to take effect in the 2026 crop year. The changes provide stronger loan rates for major commodities such as wheat, corn, cotton, and soybeans.

The bill also includes historic investments in domestic sugar programs. Beginning Oct. 1, 2025, the loan rate for raw cane sugar increased to an average of twenty-four cents per pound for the 2025–2031 crop years, while refined beet sugar rates rose to an average of 32.77 cents per pound.

Significant funding was directed toward conservation programs administered by USDA, including the Environmental Quality Incentives Program (EQIP), the Conservation Stewardship Program (CSP), and the Agricultural Conservation Easement Program (ACEP). These investments are projected to support more than $34 billion in conservation work on agricultural land over the next decade.

OBBBA also provides $285 million annually for agricultural trade promotion and facilitation, in addition to the existing $234 million annually for the Market Access Program (MAP) and the Foreign Market Development Program (FMD). The funding is intended to help expand foreign market opportunities for U.S. agricultural products.

The bill's tax provisions also offer long-term financial benefits for farmers and ranchers. Impactful provisions include the permanent extension of the 20% qualified business income deduction, full bonus depreciation, and a $15 million per individual estate tax exemption, now indexed for inflation. With rising land values, equipment costs, and input prices, the exemption is intended to reduce the likelihood that family-owned farms will incur significant tax liabilities upon the owner's death. Permanent bonus depreciation allows producers to deduct the full cost of new equipment, land improvements, barns, and other capital investments in the year of purchase rather than over multiple years.