Big Beautiful Bill Act: Effects on Idaho’s Agriculture

TL/DR –

H.R. 1 of the 119th Congress, also known as the One Big Beautiful Bill Act (OBBBA), was signed into law by President Donald Trump in 2025. The bill, a cornerstone of Trump’s second-term agenda, includes extending the 2017 Tax Cuts and Jobs Act, trimming programs such as the Supplemental Nutrition Assistance Program (SNAP) and Medicaid, adding funding to border security, and implementing $66 billion in new agricultural funding over the next decade. The bill reshapes farm policy by enhancing safety nets, tax incentives, and conservation efforts, extends commodity programs to better reflect inflation and input costs, tweaks Agricultural Risk Coverage, makes 100% bonus depreciation permanent for farm equipment and machinery, and places a permanent extension of the estate and lifetime gift tax exemption to $15 million for single filers.

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A Closer Look at President Trump’s One Big Beautiful Bill Act

Marking a significant milestone in President Donald Trump’s second term, the One Big Beautiful Bill Act, or OBBBA, officially became law on July 4, 2025. Known as H.R. 1 of the 119th Congress, this expansive legislation extends the 2017 Tax Cuts and Jobs Act, trims programs like the Supplemental Nutrition Assistance Program (SNAP) and Medicaid, and increases funding for border security.

OBBBA’s impact spans across various sectors, but the bill is particularly consequential for the agricultural community. Over the next ten years, it is set to infuse $66 billion in new funding to benefit those in farming and livestock rearing. Also incorporated into the legislation are aspects of a previously stalled farm bill, now aptly titled “Farm Bill 1.0.”

Agricultural Implications

Through OBBBA, Congress has restructured farm policy to offer more robust safety nets, tax incentives, and conservation efforts. Notable provisions include the extension of commodity programs from the 2018 Agriculture Improvement Act through 2031, and the adjustment of reference prices for crops such as wheat, corn, and soybeans to better reflect inflation and input costs.

The Act also modifies the Agricultural Risk Coverage by boosting revenue guarantees and increasing the maximum payment. Provisions are included for the allocation of new base acres nationwide, the extension of beginning farmer and rancher benefits, and expansion of insurance options, giving producers more leverage in shaping their risk management strategies.

Tax Impact

OBBBA’s tax provisions significantly influence its impact on the farming community. The legislation makes 100% bonus depreciation for farm equipment and machinery permanent, allowing immediate expensing of these items. It also doubles the Section 179 expense maximum from $1.25 million to $2.5 million.

Moreover, the estate and lifetime gift tax exemption is permanently extended, providing important relief for family farms transitioning to the next generation. The Act also propels trade by directing the USDA to develop and expand commercial exports of U.S. commodities, providing $285 million in funding to support these initiatives.

Environmental and Risk Management Provisions

The bill also prioritizes conservation and risk management. It dedicates $10 billion to programs like the Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP), while reducing benefits from SNAP by $30 billion.

Idaho’s agricultural sector, which relies heavily on dairy and crop production, stands to gain significantly from OBBBA’s provisions. These include extended Dairy Margin coverage, modifications to the USDA’s sugar program, and enhanced support for specialty crops such as potatoes. However, potential challenges loom with the imposition of tariffs and reductions in domestic demand due to SNAP cuts.

Lastly, the Act extends small-business tax deductions, a move that will benefit over 200,000 Idaho entrepreneurs, including family farms and ranches. This provision, part of a broader $200 billion tax relief package, will primarily benefit the nearly 90% of taxpayers who claim the standard deduction.

While the scale of OBBBA is undeniably large, its beauty lies in the eye of the beholder. For those who appreciate tax cuts, enhanced commodity and insurance programs, and funding for trade and conservation promotion, OBBBA offers a promising path for the future of the nation’s agricultural sector.

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