Farmers Face Tax Time Bomb: TCJA Expiration Threatens Rural America

LISTEN UP, FARMERS AND RANCHERS! The clock is ticking, and the expiration of the Tax Cuts and Jobs Act (TCJA) provisions on December 31, 2025, is about to blow up your balance sheets. This isn't just about numbers; it's about the survival of farm families across America. Let's break it down:

THE TCJA TIME BOMB

- Tax Hikes Ahead: The biggest tax increases are coming with the expiration of TCJA provisions at the end of 2025. Farm families of all sizes will feel the pinch, with an estimated additional $9 billion in federal taxes each year if TCJA expires.

- Profit Margins at Risk: Small farms on the brink of breaking even will be hit hardest. Each dollar spent on taxes is one less dollar for farm improvements, hiring workers, or investing in the community.

- Economic Ripple Effects: The impact won't stop at the farm gate. Moderate farms, which are the first to make a profit, will see over 13% of their meager profits eaten up by higher taxes. This could lead to less production, job cuts, and a $10 billion reduction in overall economic activity.

THE AG SUPPLY CHAIN IN THE CROSSHAIRS

- Job Losses: EY estimates that the expiration of TCJA provisions could lead to agriculture losing 49,000 jobs, equaling $3 billion in wages.

- Rural Communities at Risk: The ripple effects will be felt throughout the entire ag supply chain and rural communities. Feed stores, grain elevators, and equipment mechanics—all essential for the agricultural supply chain—are at risk.

- Economic Activity Plummets: The broader economic activity in rural communities will be reduced, affecting local businesses and the overall economic health of these areas.

CONGRESS, IT'S TIME TO ACT!

- Policy Permanency: Farm families already face several unknowns on their balance sheet from labor costs and yearly revenues. Policy permanency, particularly with a favorable tax code, is one way policymakers can provide a bit of stability for the 2% of Americans providing food, fiber, and fuel for our nation and the world.

- Don't Let the TCJA Expiration Bankrupt Farm Country: Most farming risks, like markets and weather, are out of farmers’, ranchers’ and Congress’ hands, but there is something that can be done about current policy-driven risks like the TCJA expirations and an outdated farm bill.

TAKE ACTION NOW!

- Contact Your Representatives: Urge them to extend the TCJA provisions and provide tax relief for farm families.

- Spread the Word: Share this information with other farmers, ranchers, and rural communities. The more voices that speak out, the louder the message will be.

- Stay Informed: Keep an eye on the latest developments and be ready to act when the time comes.

Farmers and ranchers, you are the backbone of America. Don't let this tax time bomb blow up your livelihoods. Stand up, speak out, and fight for the future of farm country!