One Big Beautiful Bill brings aid to farms as Farm Bill looks to get "skinny"

July 17, 2025

By: Katherine Trowbridge

President Donald Trump signed the “One Big Beautiful Bill” (OBBB) into law on July 4. This budget reconciliation bill includes provisions typically found in a farm bill, alongside tax cuts, and other policy changes. The bill aims to support agriculture by strengthening the farm safety net, improving crop insurance, and boosting agricultural trade, while also providing tax relief for farmers.

According to the American Farm Bureau Federation, the reconciliation bill “represents a meaningful step toward securing the tools farmers and ranchers need to navigate today’s volatile economic landscape. While not all inclusive, the bill reflects many of Farm Bureau’s core priorities: strengthening the farm safety net, delivering long-term tax relief, supporting market access, and investing in animal health and ag innovation.” The Bureau called these, “critical wins for American Agriculture.”

While not a “Farm Bill”, the Big Beautiful Bill applied $67 billion in spending on Farm Bill programs. Yet, there are other Farm Bill programs and priorities that still need funding, extensions, or updating.

The American Relief Act of 2025 was signed into law on December 21, 2024, extending the Agriculture Improvement Act of 2018 (also known as the 2018 Farm Bill) for one year. That extension will expire on September 30. The farm bill provides over $100 billion every year, to ensure farmers keep producing food, and that poor people’s plates aren’t empty. Farmers and ranchers rely on the Farm Bill for necessary funding and support to maintain current operations and adapt to the challenges of an ever changing industry. The Farm Bill feeds the hungry (Food Stamps made up the largest portion at 80% of the cost). The Farm Bill also protects our environment. The Farm Bill encompasses farm commodities, conservation, research, nutrition, bio tech programs, food programs, marketing, and more.

House Agricultural Chair Glenn “GT” Thompson (R-PA) is looking ahead to a “Skinny” Farm Bill, calling it “Farm Bill 2.0” and predicting a cost of less than $8 billion. The legislature is anticipated to be basing their fall legislation largely on what the House Ag committee advanced in 2024, in regards to the Farm Bill.

This smaller farm bill would include important priorities that hadn’t been addressed in the reconciliation bill.

A closer look - Key Agriculture provisions included in the One Big Beautiful Bill

The bill enhances programs like Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC), increasing reference prices and commodity loan rates to better reflect current market conditions and production costs - leading to a strengthened farm safety net.

The OBBB enhances crop insurance making it more affordable and accessible for farmers, providing a crucial safety net against losses due to weather, pests, and other unforeseen circumstances.

A key component in a global economy is the funding the bill provides for programs that promote the export of U.S. agricultural products, helping farmers access new markets and increase their sales.

Tax relief measures in the bill are also key for farmers. The OBBB extends the 2017 tax cuts, including provisions that benefit farmers and ranchers by making the 20% Qualified Business Income deduction permanent, increasing the small business expensing threshold, and providing immediate expensing for farm equipment. It will also include a permanent $15 million (indexed for inflation) per person estate and gift tax lifetime exemption, which is a significant benefit for retiring farmers looking to pass their farms on to the next generation without incurring substantial estate taxes.

These agricultural provisions within the bill have the potential to increase profitability and stability for farmers, enhance food security, preserve family farms, and stimulate economic growth in rural areas - creating jobs, and improving the overall quality of life - much of what the Farm Bill typically does.

While the bill’s agricultural provisions are looked at by many as a win for agriculture, Farm Aid stated that some critics argue the bill is disproportionate - favoring larger agricultural operations through increased subsidies and exemptions, potentially disadvantageous to smaller farms.

With so many Farm Bill provisions included in the OBBB, some also fear that it will create less of an urgency to pass the Farm Bill. However, it does appear that the Agricultural Committee has the Farm Bill still in its sights, we will see what transpires in the Fall Legislative Session.