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With the 2017 Tax Cuts and Jobs Act (TCJA) set to expire on December 31, 2025, agriculture industry leaders are calling on Congress to extend its provisions, warning that failure to act could result in significant tax increases for farmers, ranchers, and millions of American households.
What’s at Stake for Farmers and Ranchers?
According to Dustin Sherer of the American Farm Bureau, the expiration of TCJA would result in:
✅ Higher tax rates on farm and ranch business income.
✅ The estate tax exemption dropping from $11M (indexed for inflation) back to $5.5M, making it harder for family farms to pass to the next generation.
✅ Billions in additional tax burdens for farmers and ranchers.
Without congressional action, 65% of American households could face tax increases, totaling trillions of dollars in additional tax liabilities.
Where Does Legislation Stand?
The extension process hinges on budget reconciliation between the House and Senate. The Senate has already passed a budget resolution addressing energy, border security, and defense spending, while the House is working on a comprehensive bill.
Farm groups and industry leaders continue to push lawmakers to make TCJA provisions permanent, ensuring tax relief for farmers, ranchers, and small businesses. The decision will have long-term economic consequences for the agriculture sector and beyond.
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