Big Week in D.C. Brings Wins for Farmers

South Dakota’s farmers and ranchers can count a few key victories from Capitol Hill this week. Thanks to efforts supported by Senator Thune and others in Congress, several policy provisions are advancing that bring long-term benefits to rural communities, family farms, and agribusinesses.

Here’s what’s in the package for agriculture:

Tax Relief & Flexibility

• Estate Tax: Lifetime exemption raised to $15 million ($30M for couples) starting in 2026—permanently extended and indexed for inflation.
  
  

• 199A Deduction: Made permanent for qualified business income, with broader eligibility and expanded income limits.
  
  

• Bonus Depreciation: Permanently restored to 100% for equipment and property placed in service after January 2025.
  
  

• Interest Exclusion: Banks can permanently exclude 25% of interest income from ag and rural real estate loans.
  
  

Farm Safety Net Improvements

• Boosted support through ARC/PLC programs, updated reference prices, and greater access to crop insurance and disaster aid.
  
  

• Payment limits increased to account for inflation.
  
  

• Beginning farmers now qualify for support for up to 10 years.
  
  

Conservation and Biofuels Support

• Increased mandatory funding for conservation programs like EQIP and CSP.
  
  

• The 45Z Clean Fuel Production Credit extended through 2029, supporting biofuel production from North American feedstocks.
  
  

Trade Expansion

• $285 million annually to grow export markets for U.S. ag commodities.
  
  

There’s still work ahead, but these provisions, many of which are permanent or long-term, provide critical stability and investment for the future of U.S. agriculture.

We appreciate Senator Thune’s leadership in advocating for these priorities and making sure ag has a seat at the table.