Big Tax Breaks, New Opportunities Head to Farm Country
April 28, 2026
As the old saying goes, only two things in life are certain: death and taxes. USDA Undersecretary of Agriculture for Farm Production and Conservation Richard Fordyce says several provisions in the recently passed “one big, beautiful bill” could deliver significant benefits for farmers, ranchers, and rural America. Among the biggest highlights: changes to the estate tax, the return of expanded Section 179 expensing, and the opportunity for additional base acres under USDA farm programs.
Fordyce said one of the most notable tax provisions is what he described as a permanent elimination of the “death tax,” establishing a $15 million inheritance tax exemption per person. He noted that for many family farms, rising land and asset values can quickly push operations toward that threshold, creating difficult decisions for heirs when a family member passes away. In the past, he said, some heirs were forced to borrow money or sell part of the farm in order to cover inheritance taxes. Fordyce called the new exemption a major win for farm country, saying producers have pushed for this kind of relief for years.
Another provision Fordyce highlights is the return of Section 179 bonus depreciation, which he said will once again allow farm businesses to expense capital purchases of up to $2.5 million in a single year. That could apply to investments such as tractors, land improvements, or farm buildings. He said the provision gives producers more flexibility to make needed upgrades and investments while receiving immediate tax treatment on those purchases.
Fordyce also points to an important update tied to USDA safety net programs. As part of the legislation, USDA now has the authority to add 30 million new base acres that do not currently exist. He said local FSA offices are now reviewing planted eligible crops from 2019 through 2023 to determine what farms may qualify for those new acres. Once that review is complete, USDA will calculate how the acres will be distributed nationwide.
He stresses that the process will not be first come, first served. Instead, if a farm is eligible for additional base acres, the landowner will receive notification automatically. If total eligible acres exceed the 30 million-acre cap, USDA will prorate those acres across the country based on the farm’s history of planted eligible commodities.
Fordyce also offers an important reminder for operators who rent land: the notification about any new base-acre opportunity will go to the landowner, not the operator. Because of that, he said it may be wise for tenants to alert landlords that additional base acres could be coming and to be prepared to help them evaluate whether to accept the acres or opt out.
Taken together, Fordyce says the provisions represent meaningful wins for rural America—helping protect family farms during generational transfer, encouraging reinvestment in agricultural operations, and expanding opportunities within USDA farm programs.
Source: Western Ag Network
