One Big Beautiful Bill Act (H.R.1) - Key Agriculture Highlights

For Our Ag Clients

We have a lot of people asking about how the One Big Beautiful Bill Act (H.R.1) will affect them moving forward. While we are not CPA’s and do not offer tax consulting, we have taken notice of the changes. The following are some highlights that we think you should know about and ask your tax professional if it will be applicable to you.

Agriculture provisions

• Sec. 70301 - This reinstitutes 100% bonus depreciation for qualified property, it appears to include farm machinery and livestock facilities placed in service after January 20, 2025.

• Sec. 70306 - This will directly affect Sec. 179 expenses. It appears to increase the deduction limit and will allow for substantial upfront expenses. In short, the maximum deduction doubled from $2.5 million to $4 million indexed annually for inflation. However, there is a lot of “fine print” with this section; please review with your tax preparer.

• Sec 70307 - Qualifying production property, offers 100% expense for qualified production property, this could include agricultural production facilities.

Estate and Gift Tax Provisions

• Sec. 70106 - This is the extension and enhancement of the current estate and gift tax exemption. It raises the exclusion to 15 million per person (30 million for a married couple).It will also be indexed for inflation.

• Sec. 70105 - The QBI deduction (includes agriculture) Theis makes the 23% deduction for pass-through entities permanent (or at least as permanent as tax codes go).It also has higher phase-out thresholds for high income earners.

• Sec. 70106 - This is the extension and enhancement of the current

estate and gift tax exemption. It raises the exclusion to 15 million per

person (30 million for a married couple).It will also be indexed for

inflation.

• Sec. 70105 - The QBI deduction (includes agriculture) Theis makes

the 23% deduction for pass-through entities permanent (or at least

as permanent as tax codes go).It also has higher phase-out

thresholds for high income earners.

Provision	Section	Summary
100% Bonus Depreciation for farm assets	Sec. 70301	Full expense for property after Jan 20, 2025
Enhanced Section 179 deduction	~Sec. 70306	High cap on equipment expensing
100% expense for production property	Sec. 70307	Benefit extends to ag production facilities
QBI pass-through deduction (23%)	Sec. 70105	Permanently supports farm income deduction
Estate & Gift Tax Exemption   increased	Sec. 70106	$15M individual / $30M couple, inflation‑indexed, permanent
GST exemption alignment	-	Matches estate/gift exemption for generational transfers

Why look at these sections in particular?

• Sec. 70301 & 70307 can help with immediate deductions

• Section 179 offers farmers instant write-offs on qualifying equipment.

• Sec. 70105 Shores up pass-through deduction for farm income.

• Sec. 70106 increases estate/gift thresholds. For succession, estate

• planning, and generational wealth transfers, this is a very important

section. While these are the highlights, there are several additional amendments and

changes that you might need to know. For example, section 10401 (a) updates

the Livestock Indemnity Program (LIP) predation losses are now covered at

100% instead of 75%. Adverse weather or disease losses are still covered at

75%

This isn’t an all-inclusive list of changes, but these are some highlights that we

thought you would find helpful. There are still guidelines, explanations, and

regulations that will come up to  help clarify these changes and amendments.

We will do our best to keep you informed, but we always recommend seeking

appropriate legal and tax advice to discuss your particular situation.

Brandon Dirkschneider, CFP®, CAP®, FSC, CLTC® 

Adam Bailey

Cindy Bojanski, CFP®, RICP®

Jared Knobbe, CFP® 

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