Agricultural implications of the “One, Big, Beautiful Bill”

The House Budget Committee has advanced a budget reconciliation package that includes $60 billion in new funding for farm programs over the next decade. Known as the “One, Big, Beautiful Bill,” the legislation provides a significant investment in production agriculture while also proposing major changes to federal nutrition and tax policy.

During the House Agriculture Committee’s markup of related provisions, Chairman GT Thompson emphasized the pressure facing U.S. producers. He cited rising input costs, falling commodity prices, and multiple years of financial loss for several major commodities.

“Input costs have skyrocketed, commodity prices are down, and the margin squeeze has every major commodity under water, with some in their third consecutive year of losses,” Thompson said.

According to the Agricultural and Food Policy Center at Texas A&M, farm profitability projections are currently at their lowest in over 40 years. Farm debt has reached a 50-year high, and Thompson warned that continued financial strain could impact the broader food and ag supply chain.

Key agricultural provisions in the bill include:

• Expanded reference prices in the Price Loss Coverage (PLC) program and increased support in Agricultural Risk Coverage (ARC).
• Increased Dairy Margin Coverage (DMC) and a raised payment cap of $155,000 per entity.
• Authorization of up to 30 million new base acres for commodity program eligibility, based on planted acres and USDA allocation formulas.
• Reimbursement for livestock losses caused by natural disasters or predator depredation.
• Continued funding for animal disease preparedness and response, including NADPRP, NAHLN, and the NAVVCB.
• An extension of the 45Z Clean Fuels Production Tax Credit through 2031 for domestically produced feedstocks.

The House Agriculture Committee also advanced a smaller version of the farm bill as part of the package, which focused on improving the farm safety net while reducing nutrition spending. That section of the bill would provide a net savings of $230 billion over ten years. However, some elements typically included in a full farm bill, such as Rural Development and forestry programs, were not addressed.

Tax provisions in the bill are also relevant for agricultural businesses. The legislation maintains the lower individual tax rates enacted in 2017, restores 100 percent bonus depreciation for equipment purchases, and increases the deduction for qualified business income from 20 percent to 23 percent.

The nutrition portion of the bill proposes more than $300 billion in reductions to the Supplemental Nutrition Assistance Program (SNAP) over ten years. These changes include new eligibility requirements, extended work mandates, and a cost shift to state governments. The Congressional Budget Office estimates these adjustments could affect around 3 million recipients.

Agricultural groups have expressed a range of opinions on the proposal. Some view the increased support for commodity programs and disaster assistance as a much-needed update to the farm safety net. Others, including the National Young Farmers Coalition, raised concerns about the impact of SNAP reductions on food access and local farm viability. They also pointed to the need for continued investment in conservation and land access programs for beginning and underserved farmers.

The reconciliation bill is expected to go before the full House for a vote prior to the Memorial Day recess.