Agriculture and Nutrition Provisions in Senate Tax Bill
Our Privacy Policy has been updated! The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "ACCEPT", you acknowledge our privacy policy and consent to the use of cookies. 

CED Newsletters & Policy Alerts

Timely Public Policy insights for what's ahead

The Senate-passed version of H.R. 1, the ”One Big Beautiful Bill Act,” strengthens the farm safety net by raising reference prices under the Price Loss Coverage program (PLC) and the Agriculture Risk Coverage (ARC) program, which both aim to protect farmers from significant income losses from fluctuations in crop prices or revenue shortfalls, and strengthen crop insurance programs and disaster relief for livestock. Also included are major tax provisions benefitting producers, including the immediate expensing of farm equipment, a small business tax break, an increase in the estate tax exemption, and a revised 45Z Clean Fuel credit. The bill also includes significant cuts to the Supplemental Nutrition Assistance Program (SNAP) by tightening work requirements for able-bodied adults and parents of children over the age of 14 and limiting the ability of states to waive work requirements.

Trusted Insights for What's Ahead®

  • Last week, USDA Secretary Brooke L. Rollins published an opinion piece in Newsweek, writing that the bill “increases the farmer safety net, crop insurance, and trade programs. These changes to farm support will allow USDA to return to our core mission of putting Farmers First and restoring rural prosperity across the country.”
  • Both House and Senate versions of the bill strengthen the farm safety net by updating the ARC and PLC programs and increase reference prices and commodity loan rates to better reflect current higher production costs and market conditions. The Senate version invests $65.6 billion into the farm safety net, $9 billion more than the House version of the bill.
  • The legislation includes several key measures that benefit the biodiesel industry. The Senate version extends the 45Z Clean Fuel Production Credit through the end of 2029, applying it only to feedstocks from the US, Canada, and Mexico. However, the National Corn Growers Association (NCGA) spoke out against the Senate version of the bill which cuts the top payment rate for the 45Z credit from $1.75 to $1 per gallon, “an action that could injure the new market’s growth potential which corn growers feel could have a substantial impact on their profitability for years to come.” The bill also expands the small agri-biodiesel producer tax credit from 10 cents to 20 cents a gallon.
  • SNAP provisions include the implementation of a cost-share program proportional to state payment error rates to incentivize states to address benefits fraud. States will be required to contribute a set percentage of the cost of SNAP benefits beginning in fiscal year 2028 if their payment error rate exceeds 6%. The bill is projected to cut spending on food aid by $186 billion, with the majority coming from cuts to SNAP.
  • Senate leadership added several provisions to win over the vote of Senator Lisa Murkowski (R-AK), including delayed implementation of the SNAP matching funds requirements for states with the highest payment error rates. (Alaska had the highest payment error rate in 2024.)

Agriculture and Nutrition Provisions in Senate Tax Bill

July 02, 2025

The Senate-passed version of H.R. 1, the ”One Big Beautiful Bill Act,” strengthens the farm safety net by raising reference prices under the Price Loss Coverage program (PLC) and the Agriculture Risk Coverage (ARC) program, which both aim to protect farmers from significant income losses from fluctuations in crop prices or revenue shortfalls, and strengthen crop insurance programs and disaster relief for livestock. Also included are major tax provisions benefitting producers, including the immediate expensing of farm equipment, a small business tax break, an increase in the estate tax exemption, and a revised 45Z Clean Fuel credit. The bill also includes significant cuts to the Supplemental Nutrition Assistance Program (SNAP) by tightening work requirements for able-bodied adults and parents of children over the age of 14 and limiting the ability of states to waive work requirements.

Trusted Insights for What's Ahead®

  • Last week, USDA Secretary Brooke L. Rollins published an opinion piece in Newsweek, writing that the bill “increases the farmer safety net, crop insurance, and trade programs. These changes to farm support will allow USDA to return to our core mission of putting Farmers First and restoring rural prosperity across the country.”
  • Both House and Senate versions of the bill strengthen the farm safety net by updating the ARC and PLC programs and increase reference prices and commodity loan rates to better reflect current higher production costs and market conditions. The Senate version invests $65.6 billion into the farm safety net, $9 billion more than the House version of the bill.
  • The legislation includes several key measures that benefit the biodiesel industry. The Senate version extends the 45Z Clean Fuel Production Credit through the end of 2029, applying it only to feedstocks from the US, Canada, and Mexico. However, the National Corn Growers Association (NCGA) spoke out against the Senate version of the bill which cuts the top payment rate for the 45Z credit from $1.75 to $1 per gallon, “an action that could injure the new market’s growth potential which corn growers feel could have a substantial impact on their profitability for years to come.” The bill also expands the small agri-biodiesel producer tax credit from 10 cents to 20 cents a gallon.
  • SNAP provisions include the implementation of a cost-share program proportional to state payment error rates to incentivize states to address benefits fraud. States will be required to contribute a set percentage of the cost of SNAP benefits beginning in fiscal year 2028 if their payment error rate exceeds 6%. The bill is projected to cut spending on food aid by $186 billion, with the majority coming from cuts to SNAP.
  • Senate leadership added several provisions to win over the vote of Senator Lisa Murkowski (R-AK), including delayed implementation of the SNAP matching funds requirements for states with the highest payment error rates. (Alaska had the highest payment error rate in 2024.)

This publication is only available to Members. Please sign in to your myTCB® account to access it. To learn more about becoming a Member, click here. To check if your company is a Member, click here.

myTCB® Members get exclusive access to webcasts, publications, data and analysis, plus discounts to events.

More From This Series

Newsletters & Alerts
Newsletters & Alerts
Newsletters & Alerts
Newsletters & Alerts
Newsletters & Alerts