By Scout Nelson
South Dakota farmers and ranchers are seeing significant wins from new legislation that strengthens agriculture’s future. Backed by leaders like Senator Thune, this package includes long-term provisions aimed at empowering family farms and rural communities.
The tax relief measures are a key highlight. Estate tax exemptions will rise permanently to $15 million for individuals and $30 million for couples starting in 2026. The Section 199A deduction has been made permanent, allowing broader access and higher income limits. Bonus depreciation for farm equipment will return to 100% starting in 2025. Additionally, rural banks gain a tax advantage by excluding 25% of interest income on agricultural and rural property loans.
Enhancements to the farm safety net include stronger ARC/PLC program support, increased payment limits indexed for inflation, and extended eligibility for beginning farmers—up to 10 years of program access.
Conservation and energy programs are also getting a boost. Increased funding is heading to the EQIP and CSP programs, while the Clean Fuel Production Credit (45Z) has been extended through 2029 to support domestic biofuel production.
For global outreach, $285 million will be provided annually to expand agriculture trade opportunities and open new markets for U.S. commodities.
The reforms reflect a solid commitment to strengthening rural economies, protecting farm legacies, and expanding access to markets for future generations.
Photo Credit: istock-fangxianuo
Categories: South Dakota