Farmers First
Working Families Tax Cuts Act
The Working Families Tax Cuts Act is putting farmers first — delivering a stronger safety net, lower taxes, and greater certainty for America’s farmers and ranchers.
Top 3 Headline Wins
- $13.8B Delivered to farmers through ARC & PLC
- 30M New base acres added to the farm safety net
- 10–21% Higher reference prices for major commodities
President Trump Is Delivering for America’s Farmers
Working Families Tax Cuts Act Wins for American Farmers
Signed into law by President Trump on July 4, 2025, the Working Families Tax Cuts Act protects family farms, makes key tax relief permanent, and strengthens the tools farmers and ranchers count on when markets and weather turn against them.
Protected Family Farms from the Death Tax Keeping family farms in the family for the next generation.
The law permanently raises the estate and gift tax exemption to $15 million per individual ($30 million per married couple) beginning in 2026, indexed for inflation — so families can pass the farm to the next generation without selling land or equipment to pay the tax bill.
Made 100% Equipment Expensing Permanent Write off the full cost of new equipment in the year it’s purchased.
Permanent 100% bonus depreciation means farmers can continue to deduct the entire cost of qualifying new and used equipment, machinery, and farm structures in the year of purchase — freeing up cash to reinvest in the operation.
Expanded the Farm Equipment Deduction Higher Section 179 limits for equipment and property investments.
The Section 179 expensing limit doubles to $2.5 million, with the phase-out threshold raised to $4 million and both indexed for inflation — giving more farms the ability to immediately deduct investments in equipment and property.
Made the 20% Small Business Deduction Permanent Lasting tax relief for farms organized as pass-through businesses.
The 20% qualified business income deduction (Section 199A) is now permanent, providing certainty for the many family farms and ranches that operate as sole proprietorships, partnerships, and S corporations.
Raised ARC & PLC Payment Limits Payment limits that keep pace with today’s cost of farming.
The payment limit for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) increases from $125,000 to $155,000 and is now indexed to inflation, so the safety net keeps up with rising input and operating costs.
Expanded Family Farm Eligibility Fair payment-limit treatment for family farms organized as LLCs and S corps.
Family farms structured as limited liability companies and S corporations are now treated like general partnerships for payment limitation purposes, so each qualifying member can receive their own limit — the same as farms organized under other business structures.
Strengthened Livestock Disaster Assistance Stronger support when ranchers lose livestock to predators, disease, and disaster.
The law strengthens livestock disaster programs, including raising Livestock Indemnity Program payments for losses to federally protected predators to 100% of market value and improving support for losses from disease and adverse weather.
Raised Commodity Loan Rates Better marketing loan rates for major commodities.
Marketing assistance loan rates increase for covered commodities, including corn, soybeans, and wheat, giving farmers more financing flexibility at harvest and a stronger floor when prices fall.
Strengthened Orchard & Nursery Assistance More help replanting trees, bushes, and vines lost to natural disasters.
The Tree Assistance Program provides increased cost-share for orchardists and nursery growers to replant and rehabilitate trees, bushes, and vines lost to natural disasters, helping specialty crop operations recover faster.
Expanded Crop Insurance Options More affordable coverage and more choices for managing risk.
Crop insurance is an essential risk management tool that allows American farmers and ranchers to endure weather and market volatility. The law expands Supplemental Coverage Option (SCO) coverage and premium support, extends enhanced benefits for beginning farmers from 5 to 10 years, and is expected to save producers more than $400 million in premiums annually.
The Record
Putting American Farmers First
The Trump Administration has been working around the clock since January 20, 2025, to put American farmers first after inheriting the worst farm economy in decades.
More from the Working Families Tax Cuts Act
- Conservation Investments. $34 billion over 10 years for voluntary, farmer-led conservation programs.
- Trade Promotion. $285 million a year for agricultural trade promotion and facilitation to open and grow markets for American products.
- Crop Insurance Savings. More than $400 million in annual premium savings for producers.
- Specialty Crop Support. Increased funding for the Specialty Crop Research Initiative to $175 million per year (was $80 million) and the Specialty Crop Block Grant Program to $100 million per year (was $85 million).
- Plant Protection. Increased funding for the Plant Pest and Disease Management and Disaster Prevention Program (Sec. 7721) to $90 million per year (was $75 million).
- Animal Health Protection. Increased funding for key animal health programs to $233 million per year through 2030 (was $30 million).
- Fighting Citrus Greening. Provided $25 million per year through 2031 to fund the Emergency Citrus Disease Research and Extension Program.
- Research Infrastructure. Provided $125 million per year for the Research Facilities Act Program to build or modernize agricultural research facilities at universities.
Opening Markets Through Trade
- Cutting Ag Trade Deficit. The Trump Administration inherited a projected $50 billion agricultural trade deficit; however, new trade deals have led to increased exports and that deficit has been slashed by 51%.
- Setting Export Records. America is setting export records in key markets across the globe, including Mexico, South Korea, Vietnam, Colombia, Taiwan, the European Union, and the Dominican Republic.
- New Trade Deals and Frameworks. Secured 20 trade deals and frameworks, including agreements with Switzerland and Liechtenstein, El Salvador, Argentina, Ecuador, Guatemala, China, Malaysia, Cambodia, Thailand, Vietnam, South Korea, the European Union, the Philippines, Indonesia, Japan, and the United Kingdom.
- Switzerland and Liechtenstein. Committed to invest at least $200 billion in the United States and remove tariffs on agricultural products.
- China. Committed to delaying new export controls on rare earth minerals and resuming large purchases of U.S. soybeans, sorghum, and more.
- Thailand and Japan. Thailand will eliminate tariffs on 99% of U.S. goods, and Japan committed to $8 billion in U.S. agricultural purchases.
- America First Trade Promotion Program. Apply for the America First Trade Promotion Program.
Farmer Bridge Aid
- Farmer Bridge Assistance Program. Announced December 8, 2025, providing up to $11 billion in one-time payments to row crop farmers.
- Specialty Crops and Sugar. $1.775 billion reserved for specialty crop and sugar producers.
Ad Hoc Assistance
- Emergency Commodity Assistance Program. $9.3 billion delivered to more than 560,000 farmers through ECAP.
- Marketing Assistance for Specialty Crops. $1.8 billion to more than 52,000 producers through MASC.
- Supplemental Disaster Relief Program. $13.71 billion distributed through SDRP.
- State Block Grants. More than $2.5 billion in block grants to states.
Competition and Input Costs
- DOJ-USDA Partnership. Signed a Memorandum of Understanding (PDF) on September 26, 2025, to investigate anticompetitive practices driving up farm input costs.
- Price-Fixing Executive Order. President Trump signed an Executive Order on December 6, 2025, addressing price fixing and anti-competitive behavior in the food supply chain.
Lowering Labor Costs
- H-2A Wage Reform. Farm labor costs increased 47% since 2020, largely due to the high cost of the H-2A program. A new Department of Labor interim final rule decreased wage costs for H-2A employers, resulting in initial savings of $2 billion.
- Streamlined Filing. The Department of Homeland Security streamlined the H-2A filing process on October 2, 2025.
Food Purchases (Section 32)
- Citrus. Announced a $30 million Section 32 buy to back U.S. producers.
- Invasive Catfish. Announced a $2 million Section 32 buy to help clear the Chesapeake of harmful invasive catfish.
- Pollock, Apples, and Beans. Announced up to $230 million in Section 32 buys for communities in need.
- Groundfish and Seafood. Announced a $67 million Section 32 buy of American seafood.
Supporting Biofuels
- Summer E15. EPA approved summer E15 sales, supporting year-round availability.
- Renewable Fuel Standard. Proposed revisions to the Renewable Fuel Standard for 2026–2027.
Resources
Resources for Farmers
USDA programs and guidance to help farmers put the Working Families Tax Cuts Act to work.
ARC & PLC
Program details, base acre allocations, and enrollment information.
Crop Insurance
Coverage options and policy information from the Risk Management Agency.
FSA Programs
Farm loans, disaster assistance, and commodity programs.
Find Your Service Center
Connect with your local USDA office for help with programs.
