By Andi Anderson
The recently passed One Big Beautiful Bill Act, signed by former President Donald Trump, delivers a mixed outcome for U.S. farmers.
While it boosts financial security for commodity crop producers, it also slashes funding for food assistance programs—raising concerns for specialty growers and rural communities.
The law increases agricultural spending by $66 billion over the next decade, with over 80% of that aimed at helping commodity farmers recover from low market prices and natural disasters.
Key programs like Agricultural Risk Coverage and Price Loss Coverage were extended through 2031, with increased reference prices and payment limits. These updates represent the largest commodity support increase since 2002.
The bill also locks in permanent tax cuts, including the estate tax exemption, bringing praise from major agriculture groups. “Modernizing farm safety nets and extending tax benefits may help family farms stay afloat,” said Zippy Duvall, president of the American Farm Bureau Federation. Duane Stateler of the National Pork Producers Council added that the law also improves disease management and reduces regulatory burdens.
However, not all voices in agriculture are cheering. The law slashes SNAP (food stamp) funding by $186 billion and reduces Medicaid spending. Groups like the National Farmers Union warn this weakens the traditional farm policy coalition that links food security and agriculture.
The Double Up Food Bucks program, which matches SNAP dollars for fresh produce purchases at local markets, may suffer. In Iowa alone, over $600,000 in SNAP incentives were spent in 2023, supporting families and local growers alike. Reduced funding could mean fewer customers and sales for small-scale farmers.
While commodity farmers gain stronger safety nets, only 27% of U.S. farmland was enrolled in the ARC and PLC programs in 2023. Critics argue the bill favors large operations and fails to serve the broader farming community.
The law may secure short-term support for some farmers but poses long-term challenges for a united, inclusive agricultural policy.
Photo Credit: gettyimages-shotbydave
Categories: Iowa, Government & Policy