Running a farm or ranch is challenging under the best of circumstances. Agriculture operates in a world of uncertainty—from unpredictable markets to fluctuating farm business costs, to weather disasters and disease outbreaks. Farmers and ranchers need a tax code that provides certainty and recognizes their unique financial challenges as they work to provide a secure food supply for our nation.

The passage of the Tax Cuts and Jobs Act in 2017 has benefited most farm and ranch businesses, allowing them to build their operations and stimulate the agricultural economy. Important provisions include:

• Reduced tax rates,
• The new business income deduction,
• Provisions to allow the matching of income and expenses,
• Immediate cost recovery, and
• An increase in the estate tax exemption.

If no action is taken to extend the current provisions beyond 2025, farmers will face billions of dollars in tax increases in 2026. These increases will stem from both higher income tax liabilities and increased estate tax liabilities. According to a USDA report, the expiration of Section 199A alone could result in certain farms experiencing up to a 20 percent increase in their tax liability.

We need to hear from you!

• Have you used bonus depreciation or Section 179 expensing to make capital investments back in your business? Tell us about it!
• Have you used the savings from the Qualified Business Income Deduction (199A) to retain employees or expand your business? Tell us about it!
• Have you had to deal with the estate tax, either because you or someone in your family had to pay it, or because you have to pay someone else to help plan the transfer of your family business?