By Jamie Martin
Farmers and ranchers may face significant tax increases starting next year if Congress does not act to extend provisions in the Tax Cuts and Jobs Act (TCJA). The current provisions are set to expire at the end of 2025, creating concern across the agriculture sector.
Rising input costs have already strained farming operations, and an increase in taxes would only add to their financial burden.
Taxes are a major business expense, and higher taxes could force farmers to make difficult decisions about their operations and investments.
Several TCJA provisions were designed to promote economic growth and encourage investment in farming businesses and rural communities. Allowing them to expire could negatively affect these goals.
If these tax benefits are not renewed, agriculture alone could lose around 49,000 jobs, according to estimates. This loss could result in nearly $3 billion in wages and a broader $10 billion hit to economic activity.
The potential impact extends beyond individual farmers. It could slow down local economies that depend on agriculture-related jobs and business activity.
Many farmers use the savings from tax breaks to invest back into their farms, purchase equipment, and support local suppliers.
While some progress has been made through legislation passed by the House that would make these tax benefits permanent, more work remains to be done. The Senate must act to ensure continuity and certainty for agricultural producers.
Timely action from Congress is needed to protect farmers and rural economies. Extending these tax provisions would help ensure that agriculture remains strong, competitive, and able to support both jobs and food production for the country.
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Categories: National