For some farmers, the recently-passed “One Big Beautiful Bill Act” could bring more security. But for others, it may do the opposite.
The massive tax and spending law, which President Donald Trump signed at the beginning of the month, is expected to increase agricultural spending by nearly $66 billion over the next decade.
Over 80% of that slice will go toward programs that help farmers make up losses from natural disasters and when commodity prices and revenues dip below certain thresholds. It also extends tax cuts from 2017 and makes others permanent, like the estate tax exemption.
MANY agriculture groups have applauded the law. American Farm Bureau Federation president Zippy Duvall stated in a news release that the changes will bring certainty for many farmers and ranchers.
“Modernizing important farm safety net programs and making permanent critical tax provisions could be the difference between staying in business or shutting down the family farm,” Duvall said. “Lawmakers took a big step toward ensuring America’s farmers and ranchers can continue to keep pantries filled for America’s families.”
Duane Stateler, National Pork Producers Council president, called the new law “one of the most consequential pieces of legislation for American agriculture in years.” He pointed to funding for animal disease prevention and management, and said the law “cuts red tape.”
BUT SOME farmer groups have raised red flags. National Farmers Union president Rob Larew stated the gains for agriculture “are paired with harmful tradeoffs.” Particularly, the bill slashes spending for the Supplemental Nutrition Assistance Program and Medicaid.
“Cuts to SNAP divide the farm bill coalition and reductions in Medicaid will have harmful effects on millions of Americans,” Larew said “Farm policy should unite us. This approach undermines the foundation of the farm bill and puts its future at risk.”
Mike Lavender, policy director of the National Sustainable Agriculture Coalition, described the law as “cannabilizing” the American food and farm system.
The legislation carves out nearly $186 billion from SNAP while subsidizing the largest, wealthiest farmers, he said.
“There’s a subset of folks who benefit from this bill,” Lavender said. “It is not the majority of folks in the food and farm system.”
Cuts to SNAP will likely hurt specialty farmers
Commodities like corn, wheat and rice tend to rely on direct payments from the government when times get tough, said Chad Hart, Iowa State University Extension and Outreach economist.
Whereas specialty crops, like tomatoes and cabbage, rely more on market access support. That includes Double Up Food Bucks, a SNAP program in over 25 states. It provides a one-to-one match for participants to buy more fruits and vegetables at participating farmers markets and grocery stores, and through community-supported agriculture.
“With food assistance basically under the chopping block here, that means less support for [specialty farmers] in the long run,” said Hart.
IN 2023, over 40,000 Iowans redeemed nearly $600,000 from the Double Up Food Bucks program. A third of that was spent at farmers markets in the state.
