Tax Code Shake-Up Could Hit Farm Families Hard

According to the American Farm Bureau, farmers and ranchers could be facing a major financial hit at the end of 2025. That’s when several key provisions from the 2017 Tax Cuts and Jobs Act are set to expire. While corporate tax cuts were made permanent, many of the benefits aimed at individuals and small businesses—including those in agriculture—are only temporary.

The Farm Bureau estimates that, without congressional action, farm families could pay an additional $9 billion in federal taxes each year. That breaks down to more than $5,000 per farm on average. And with production costs already high and profit margins tight, that kind of increase could be a tipping point.

The organization says moderate-sized farms—those most likely to break even in a good year—would be especially vulnerable. Some may be forced to delay equipment upgrades, cut back on labor, or scale down operations entirely.

They also warn that the economic ripple effect could reach well beyond the farm, potentially costing tens of thousands of jobs in rural communities.

While the weather and markets can’t be controlled, the Farm Bureau says tax policy is one area where Congress can provide some certainty.

For more: https://www.fb.org/market-intel/2025-tax-cliff-the-impact-of-the-tax-code