Editor’s note: Pinion Global’s Keaton Dugan is a new columnist to replace Maxson Irsik.
The One Big Beautiful Bill Act, signed into law on July 4, has become a common topic around kitchen tables across farm country. Some producers are optimistic, others are skeptical, and many are simply trying to wrap their heads around the nearly 900 pages of changes.
To help make sense of it, this article takes a closer look at five provisions with practical implications for farmers. Whether you’re thinking about expansion, planning for the next generation, or just trying to understand the changes, here’s what you need to know:
- Bonus depreciation returns—and it’s bigger than before
Barns, bins, equipment, machine sheds—those aren’t just line items, they’re investments in the future of your operation. Under the OBBB, 100% bonus depreciation is back for qualified property placed in service after Jan. 19, 2025.
That means you can fully deduct the cost up front rather than waiting years to recover it. For producers, it’s an opportunity to manage cash flow while still making the improvements that keep your business moving forward.
- Farmland sales gains can be deferred
Knowing when to sell land is never easy, and the taxes that come with it can make the decision even tougher. The OBBB helps ease that burden. If you sell qualified farmland to a qualified farmer, and the land will remain in agricultural production for at least 10 more years, you can now spread the capital gains over four years instead of paying them all at once.
This helps families make generational transitions with less financial strain and keeps farmland in production. For many, it’s about more than dollars—it’s about making sure the land stays in the community and in agriculture.
- Qualified Business Income deduction made permanent
Many producers operate as sole proprietors, partnerships or S corps. The 20% Qualified Business Income deduction has been a valuable tool—but it was set to expire. The OBBB makes it permanent.
Making the deduction permanent matters, giving small- and mid-size farms confidence that this deduction will be available year after year, helping keep effective tax rates in line with larger corporations.
- Permanent increase to the standard deduction
Paperwork piles up fast on the farm, and tax season just adds to the stack. The OBBB simplifies things by keeping the expanded standard deduction in place—$31,500 for married couples filing jointly, with inflation adjustments moving forward.
For many families, this means simpler filing and less taxable income. It’s a straightforward change that clears one more obstacle off the desk.
- Estate and gift tax exemption set at $15 million
Succession planning is one of the toughest conversations on the farm. Uncertainty around the estate and gift tax exemption hasn’t made it any easier. The OBBB locks the exemption at $15 million per person beginning in 2026, with inflation adjustments in future years. That stability gives families more room to plan transitions with confidence.
Final thoughts
The OBBB is a big piece of legislation, and not every provision will affect your 2025 return. Many of the changes become effective in 2026 and beyond. That makes it even more important to start planning now.
Every farm and ranch is different, and what makes sense for one family may not fit another. These provisions open doors for investment, transition, and succession—but the right approach depends on your specific situation.
Take the time to talk through these changes with a trusted adviser who understands agriculture. The more you prepare today, the more flexibility and certainty you’ll have tomorrow.
“A key takeaway is the certainty this tax policy will give to producers, ultimately enabling them to make strategic decisions—whether it’s expanding operations, transitioning ownership, or investing in new technology,” said Beth Swanson, strategic tax adviser with Pinion.
“We expect that permanent tax provisions like bonus depreciation and the 199A deduction will give producers confidence to invest in equipment and infrastructure without worrying about shifting tax rules.”
Editor’s note: Keaton Dugan, a certified public accountant, advises farmers and agribusiness owners on strategic tax planning, succession strategies, and long-term financial sustainability. Whether the goal is to expand operations, transition ownership, or optimize tax structures, Dugan draws on his experience as a trusted advisor and his background working on his family’s multi- generational farm to deliver practical, tailored solutions. Contact him at [email protected].
