New Farm Bill Law Brings Long Term Stability

H.R.1 Boosts Farm Programs Crop Insurance Tax Relief and Disaster Aid

The One Big Beautiful Bill Act, signed into law on July 4, delivers critical updates to the U.S. agriculture sector. Backed by $65.6 billion in new funding, it enhances support for farmers and ranchers through 2034.

Core safety net programs like ARC, PLC, and DMC are extended through 2031. Reference prices rise by 11–21%, and ARC guarantees grow to 90%. The USDA will allocate 30 million new base acres based on planting history, opening payment access to more producers.

DMC coverage expands to 6 million pounds per farm, with premium discounts for multiyear commitments. Marketing loan rates are also updated, and storage payment programs are restored for cotton.

Crop insurance enhancements include higher subsidies and a broader definition of beginning farmers. A new pilot program supports poultry growers with rising utility costs. Area-based plans now offer 95% maximum coverage with greater affordability.

Conservation programs like EQIP, CSP, and ACEP are funded through 2031. Renewed initiatives include the Feral Swine Eradication Program, Public Access Incentives, and Water Protection Programs. Although IRA funds are reallocated, the conservation baseline grows.

The law introduces a new $285 million/year trade promotion program from 2027, while current MAP and FMD remain unchanged. Specialty crops receive more pest control support and research funding. Organic data collection and cost-sharing are extended.

Disaster aid is improved with 100% compensation for predator-related livestock losses and new payments for unborn livestock. Tree Assistance Program cost-sharing increases to 65%.

Tax reforms bring permanent relief to farm families, with a $15 million estate exemption, expanded expensing, and a permanent 20% income deduction. The Clean Fuel Production Credit is extended to 2029, encouraging biofuel development.

“The bill offers measurable wins for producers navigating an increasingly complex farm economy,” the Farm Bureau shared.

While comprehensive, the act leaves room for a future full farm bill reauthorization to address remaining policy gaps.