On Friday, July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (H.R. 1) Public Law No: 119-21 (The OBBB Act). The legislation spans multiple sectors, Title I addresses agriculture and essentially acts as a Farm Bill reauthorization for many, but not all agricultural programs. It is expected that a "skinny Farm Bill" will need to be passed to address the provisions that were left out of Title I. It is widely believed, however, that there will be no comprehensive Farm Bill given that Title I has basically replaced this year's version. The following summary outlines key provisions related to conservation, tax issues, specialty crops and dairy and nutrition programs.
Conservation Programs
Title I of the OBBB Act includes significantly increased funding for voluntary conservation programs. This increase in funding is made possible, however in Section 10601, through the clawback of unused funds that were previously allocated in the Inflation Reduction Act (IRA) which will result in a net decrease in conservation funding of $1.8 billion during the next decade. Section 10601 early terminated the clean energy tax credits of the IRA including credits for projects placed into service after 2027 or projects not starting construction in the next 12 months. The consequences of the funding shifts include less incentives and investment in solar and wind energy.
The savings from the recission of those IRA unallocated funds were passed along to bolster voluntary conservation programs with the funds into the permanent Farm Bill baseline. The conservation programs were funded as follows:
- $18.5 billion Environmental Quality Incentives Program – provides financial and technical assistance to farmers, ranchers and forest landowners for conservation practices
- $8.1 billion Conservation Stewardship Program – initiative committed to promoting ecological and agricultural improvements for producers
- $4.1 billion Agricultural Conservation Easement Program – protects agricultural land and enhance natural resources
- $2.7 billion Regional Conservation Partnership Program – funds public- private partnerships that focus on conservation and preservation of agricultural land
Tax Issues
While not in Title I, certain tax issues are significant priorities for farmers and ranchers including the inheritance tax and small business equipment expenses. In Section 70306 of the OBBB Act , it amended Section 179b of the tax code, increasing the small business equipment deduction from $1 million to $2.5 million. It also increased the phaseout threshold from $2.5 million to $4 million.
In what was also seen as a victory by most farm and ranch groups, the inheritance tax exemption was raised to $15 million for individuals and $30 million for couples. The hope being that it will help alleviate the need to sell off land, equipment or livestock to pay expensive estate tax bills and preserve family farms.
Specialty Crops
Under Title I the Specialty Crop program is reauthorized through 2028. This is a vital program because it allows for produce that is specific to the needs, climates and growing seasons of various regions. In section 10604, the Specialty Crop research Initiative funding was increased from $80 million to $175 million annually. Also, the Specialty Crop Block Grant program, that enjoys widespread bipartisan support, was increased from $85 million to $100 million per year, allowing for greater resiliency and crop diversity.
Dairy Updates
In Section 10313 of Title I, some key updates to dairy policy were included in the OBBB Act. The Dairy Margin Coverage was extended through 2031. The Tier 1 coverage limit was expanded from 5 to 6 million pounds of milk per farm. It also changed the baseline to the highest year of production from 2021 to 2023. Also included was expansion of the trade promotion coverage. In an ongoing effort to gather accurate data for Federal Milk Marketing order discussions, the bill funded mandatory dairy cost surveys every two years. Dairy farmers were also keenly interested in the tax and conservation provisions of the bill. SNAP funding cuts and increased tariffs could have a negative impact on the dairy industry moving forward as SNAP benefits are powerful purchasing tools for dairy products. Tariffs on China have also impacted the dairy industry as they were a leading importer of American dairy products.
Nutrition Programs
Title I, Subtitle A of the OBBB Act makes significant structural changes to the Supplemental Nutrition Assistance Program (SNAP), with far-reaching implications for families, food access, and agricultural markets. The bill reduces overall SNAP funding by an estimated $186 billion through 2034, a shift that could increase hunger nationwide while weakening a major source of demand for U.S.-grown food.
Section 10001 freezes the Thrifty Food Plan at 2022 levels, eliminating future inflation adjustments that determine SNAP benefit amounts. As food prices rise, this will reduce recipients' purchasing power, impacting demand for fresh and perishable goods like fruits, vegetables, and dairy. Sections 10002 and 10008 expand work requirements for able-bodied adults without dependents (ABAWDs), increasing the age range to 18–64 and mandating at least 80 hours per month of work or training. These restrictions are projected to reduce enrollment by millions. Sections 10006 and 10007 shift significant costs to states, tying federal benefit reimbursements to SNAP error rates and reducing the federal share of administrative expenses from 50 to 25 percent beginning in FY2027.
These changes may limit access, reduce enrollment capacity, and disrupt the steady food demand that supports farmers and producers – particularly those serving local, low-income markets.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
