Ag Sector Reacts to Senate’s Passage of Reconciliation Bill

After weeks of discussion and an overnight “vote-a-thon” session rolling from Monday morning into Tuesday, the U.S. Senate passed a budget reconciliation bill late Tuesday. The bill passed with a 51-50 vote after Vice President JD Vance broke the tie on the floor. 

The bill now heads to the House of Representatives, where it will have to pass a vote in the lower chamber before heading to the desk of President Donald Trump.

Large segments of the bill will have an impact on agriculture and rural families. One of the most contentious portions of the bill is a cut to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. Republican Senators Lisa Murkowski of Alaska, Susan Collins of Maine, and Thom Tillis of North Carolina have voted against their own party on proposed changes in an effort to shore up protections for rural hospitals in the bill. On Tuesday morning, a provision doubling the size of the rural hospital fund was added to the bill, which includes $50 billion to be doled out between 2026 and 2030, per CNN. 

The original fund was $25 billion, which would not have been accessible until 2028.

Reactions from the agricultural sector to the Senate’s passage of the bill were largely popular. 

Farm Groups Opposed Grassley Bill Amendment

Over 50 farm organizations, ranging from the National Corn Growers Association to Ducks Unlimited and encompassing groups from all areas of agriculture, released a letter Sunday night opposing an amendment to the Senate reconciliation bill proposed by Iowa Republican Senator Chuck Grassley. 

Grassley’s amendment aimed to add payment limitations to farm subsidies and has garnered support from the National Farmers Union. Late Monday night, Grassley dropped the amendment and went against plans to force a vote, according to a report from Politico.

“The Grassley amendment eliminates all the positive improvements made in the bill regarding payment limits and the expansion of access to disaster assistance and conservation programs for producers with 75% or more of their average gross income derived from farming, ranching, or forestry,” the statement said. “In addition, the amendment imposes new restrictions on producers by mandating one payment limit per farming operation and substantially changing the definition of what it means for a producer to be actively engaged in farming.

“Collectively, these changes to the bill made by the Grassley amendment will impose massive additional penalties on farmers across the country even as they struggle to efficiently manage their operations while contending with a host of challenges, ranging from high input costs to volatile market prices and erratic weather. Since passage of the 2018 farm bill, grower production costs alone have increased by 25–30%,” the statement continued.

“The bill as currently drafted provides the enhancements necessary for growers to better weather the current economic environment. A strong farmer safety net is designed to provide a lifeline — not a handout — when conditions are otherwise unsustainable. Without this assurance, many producers will be unable to make the necessary investments to keep their operations viable, and some will abandon farming altogether.

“We cannot allow either outcome. For these and other reasons, we again express our strong opposition to any amendment attacking the producer safety net, including the amendment being offered by Senator Grassley, and respectfully ask you to urge your colleagues to vote no on any such amendment that may come before the Senate.”

Senators

Sen. John Boozman

John Boozman is a Republican senator from Arkansas and is the chair of the Senate Ag Committee.

“This bill delivers the largest tax cut ever for working and middle-class Americans in addition to letting tipped and hourly workers, seniors, and families keep more of their hard-earned income,” Boozman said. “It also eliminates waste, fraud, and abuse so assistance programs can continue to serve the vulnerable, and provides transformational funding for border security, national security, and energy security. These policies will help responsibly steward taxpayer dollars and make our nation stronger, safer, and more prosperous.” 

Sen. Amy Klobuchar

Amy Klobuchar is a Democratic senator from Minnesota and the Democratic Ranking Member in the Senate Ag Committee.

“This bill is bad for families trying to put food on the table, for rural economies already dealing with the impact of tariffs, and for state and local governments working to make critical investments in the future,” Klobuchar said after the bill’s passage.

“SNAP serves 42 million Americans: children, seniors, people with disabilities, and veterans. This bill will terminate food assistance for nearly 3 million of them and will reduce benefits for millions more.

“These cuts also mean farmers, who are already operating on razor-thin margins, will see billions in lost revenue and rural, independent grocers will be in jeopardy.

“On top of that, the bill shifts massive costs to the states. State and local governments will be forced to choose: Provide food assistance or reduce other critical services like law enforcement or health care. Even worse, the bill rewards states who have the highest error rates by delaying their SNAP cost-shift.

“The message to the country and the nation’s governors is this: Raise your error rate and it delays your cuts for a year. Keep your error rate high for another year, you get no cuts again. Yet states with lower error rates must pay hundreds of millions of dollars.

“Rather than shifting costs to states that they cannot pay for, what we should be doing is working together to bring down costs and to pass a bipartisan farm bill that will support all of rural America and make sure that families can put food on the table.”

USDA

USDA is the government agency tasked with overseeing the agriculture sector of the U.S., led by Secretary Brooke Rollins.

Rollins published an opinion piece in Newsweek Monday morning praising the reconciliation bill and proclaiming it a win for farmers.

“Over the next decade, the bill increases the farmer safety net, crop insurance, and trade programs,” said Rollins. “These changes to farm support will allow USDA to return to our core mission of putting farmers first and restoring rural prosperity across the country. At USDA, we are working every day on behalf of our farmers and ranchers to ensure President Trump’s America First agenda unleashes prosperity for generations to come.”

Farm Organizations

American Farm Bureau Federation

The American Farm Bureau Federation (AFBF) is the nation’s largest farmer-run organization and serves farmers in all 50 states.

The AFBF praised the Senate for passing the bill and urged the House to quickly get the bill passed.

“Farmers and ranchers are the foundation of America’s food supply chain, and they need the certainty that this legislation will provide,” said Zippy Duvall, AFBF president. “Improvements to farm safety net programs that reflect today’s agricultural economy and maintaining important tax provisions will directly benefit farm and ranch families.

“Prices being paid to farmers continue to fall, while expenses remain stubbornly high. The combination is taking a toll — America lost more than 141,000 farms in a five-year period, leading to more consolidation of family farms. Increases to reference prices as well as investments in conservation, research, and trade are desperately needed, especially since it’s been seven years since passage of a new farm bill. Farmers will stand a better chance of enduring tough times so they can plant for another season.

“Important tax provisions will also help farmers save money that can be used to pay bills, invest in new technologies, and pass the family farm to the next generation.”

National Farmers Union

The National Farmers Union (NFU) advocates on behalf of more than 230,000 American farm families.

“Family farmers and ranchers still need a comprehensive, five-year farm bill that reflects the full breadth of agriculture — from producers to consumers — and using reconciliation to move a partial package is a missed opportunity,” said Rod Larew, NFU president.

“There are some meaningful provisions in this bill. It strengthens the farm safety net, invests in biofuels and conservation, and extends key tax incentives. But these gains are paired with harmful tradeoffs — most notably, cuts to SNAP and Medicaid and new, broader loopholes in farm program payment limits. 

“Farm policy should unite us. We urge lawmakers to redouble their efforts to deliver a farm bill that works for everyone.”

Commodities Groups

National Corn Growers Association

Founded in 1957, The National Corn Growers Association (NCGA) represents more than 36,000 dues-paying corn growers in 48 states, and the interests of more than 300,000 farmers who contribute through corn checkoff programs in their state.

NCGA expressed support for some of the ag-centric portions of the bill, particularly the 45Z tax credit and “strengthening of the producer safety net.”

“NCGA has worked closely with members of Congress as they drafted and voted on this legislation,” said Kenneth Hartman Jr., Illinois farmer and NCGA president. “We are particularly pleased to see the permanent extension of certain tax provisions, which will provide more certainty to corn farmers around the country as they plan for the future of their businesses.

“While we would prefer to advance major agricultural legislation through a comprehensive farm bill, we are appreciative of the Senate leadership for getting a bill with many of our tax and farm bill priorities passed,” said Hartman.

American Soybean Association

The American Soybean Association (ASA) represents U.S. soybean farmers on domestic and international policy issues. ASA has 26 affiliate state associations representing 30 soybean-producing states and nearly 500,000 soybean farmers.

“ASA applauds the Senate for its support of agriculture and the farm economy in this legislation. Soybean growers have long championed comprehensive revisions to the 45Z Clean Fuel Production Credit, an improved safety net for agriculture, and increased support for research and market expansion,” said Caleb Ragland, a Kentucky soybean grower and ASA president. “The modified biofuel tax credits, enhancements to crop insurance and support for MAP and FMD, among other agriculture provisions included in this legislation will support U.S. farmers and expand market opportunities domestically. ASA urges the House to maintain these key agricultural provisions that support our rural economies as they consider this legislation.”

National Cattleman’s Beef Association

The National Cattleman’s Beef Association (NCBA) has represented America’s cattle producers since 1898 and is the largest association of cattle producers in the U.S.

“The Senate version of the One Big Beautiful Bill protects family farmers and ranchers across the country from a massive tax hike at the end of the year, increases the death tax exemption, makes the Section 199A tax deduction permanent, increases the Section 179 tax deduction, funds foreign animal disease prevention programs, and delivers so many more wins for cattle producers,” said Ethan Lane, NBCA senior vice president of government affairs. 

“The Senate version of the bill also does not include controversial provisions that have gained national attention. The bill does not include any sale of public lands, and it does not include controversial language on eminent domain. NCBA’s grassroots policy supports landowners’ private property rights, and we oppose the expanded use of eminent domain.

“It’s time for the House to pass this bill and send it to President Trump’s desk so he can sign it into law.”

National Pork Producers Council

The NPPC is a trade association representing U.S. pork producers and industry stakeholders.

NPPC praised Senate leadership and Boozman in particular for the efforts to “ensure key animal health provisions” present in the bill.

“Foreign animal diseases threaten not only the livelihoods of pork producers but also our food supply chain at large,” said Duane Stateler, a pork producer from McComb, Ohio, and NPPC president. “We thank our congressional leaders for these important steps to help keep our pork supplies safe, secure, and affordable for American families.”

Renewable Fuels Industry

American Biogas Council

The American Biogas Council (ABC) is the voice of the U.S. biogas industry dedicated to maximizing carbon reduction and economic growth using biogas systems.

The ABC thanked the Senate for its recognition of “homegrown energy” in the bill.

“Three in four American voters agree with federal investment in biogas production and this bill gives the industry tools it needs to keep building biogas projects and creating jobs, especially in rural communities,” said Patrick Serfass, executive director of the ABC.

“Among the most important elements is an extension of the Clean Fuel Production Credit (45Z). In addition, the final Senate language appropriately preserves important protections for manure-based biogas projects, including clear guidance for GREET [Greenhouse gases, Regulated Emissions, and Energy use in Technologies] model updates. The bill also mirrors the House’s approach to ensure that only U.S. and North American feedstocks are eligible, which helps level the playing field for U.S. producers.

“The ABC welcomes the continued transferability of tax credits, which helps finance projects in agricultural, wastewater, and food sectors. The bill also continues tax credits to incentivize energy production and investment when biogas is used to generate power — ensuring these energy investors can plan with confidence through 2032. Finally, support for the 45V hydrogen production credit will provide clarity for active investments, including those leveraging biogas and RNG in their projects.

Plant Based Products Council

The Plant Based Products Council (PBPC) “represents companies and stakeholders at the forefront of innovation in the ag bioeconomy,” per its website.

The PBPC expressed frustration with the Senate’s removal of the USDA BioPreferred Program from the passed bill.

“While we appreciate Congress’s continued support for agricultural producers, we’re deeply concerned about the uncertainty facing USDA’s BioPreferred Program,” said James Glueck, PBPC executive director. “For more than two decades, this bipartisan program has successfully driven American manufacturing job creation while strengthening markets for farm commodities. At a time when rural communities need economic opportunity and America needs supply chain resilience, we cannot afford to let this proven program languish. We urge congressional leaders to act swiftly on reauthorization and modernization that will unlock the full potential of our bioeconomy.”

Continuum Ag

Continuum Ag is an Iowa-based soil health data intelligence company using a proprietary tool called TopSoil to enable farmers to profit from improving soil health.

“Very happy to see 45Z continue to get bipartisan support and continue to get the support of the Trump administration,” Continuum Founder and CEO Mitchell Hora told Successful Farming. “I hope that the Trump administration and specifically Secretary Scott Bassett and the Department of Treasury write robust rules that reward farmer innovation and reward the opportunity for biofuel producers and farmers to work together to really maximize on this.

“We know that farmer interest is there,” Hora said. “Hopefully they get us rules and final clarity as quickly as possible. Farmers are already looking at the 2026 growing season and decisions that need to be made there. Hopefully this gets passed on Friday and we get the rules as quickly as possible after that, knowing that it’s gonna be a process.”

Corn Refiners Association

The Corn Refiners Association (CRA) is the national trade association representing corn refining industry of the U.S.

The CRA also expressed concern about the BioPreferred Program and called for bipartisan efforts to keep it afloat.

“The reconciliation package under consideration on Capitol Hill includes important language to ensure the continuity of the farm safety net and prevent a substantial tax increase, and we are pleased to see the process continue to unfold,” said John Bode, CRA president and CEO. “As lawmakers continue their work on this package and other legislation in 2025, CRA stands ready to aid efforts to include an extension of USDA’s BioPreferred Program in a piece of legislation destined for President Trump’s desk. This critical program supports farmers, rural communities, and domestic manufacturing jobs, and its continued success would be a tremendous benefit to the American economy.”

Iowa Biodiesel Board

The Iowa Biodiesel Board represents the biodiesel industry in Iowa, from the farmers who grow the feedstock, to production, through distribution to end users.

“These improvements to the biomass-based diesel tax incentive come at a pivotal moment for the industry, which has seen months of uncertainty, stalled production, and investment hesitation,” said Grant Kimberley, executive director of the Iowa Biodiesel Board. “Together with EPA’s proposed increase in Renewable Fuel Standard volumes — projecting more than 2 billion additional gallons of biomass-based diesel in 2026 — the tax developments point to a significant resurgence in clean fuel demand. This gives us much-needed certainty for the near future.

“We extend special thanks to Senator Grassley for championing an extension of the Small Agri-Biodiesel Producer Credit through 2026 — and increasing it to 20¢ per gallon. This is an important win, particularly for independent producers like those in Iowa. It will help ensure they are not disadvantaged in the market and have policy certainty right now as the Treasury works to implement Congress’ improvements to 45Z.

“The transferability provision will ensure all producers in the market can access and monetize it. This provision is vital for biodiesel producers, especially smaller ones without a large tax liability. We’re also encouraged to see domestic production and North American feedstocks appropriately prioritized. This allows American soybean farmers to compete fairly in their own market — something we’ve long fought for — without shutting out the ability to import feedstocks if necessary to meet ambitious goals.”

Editor’s note: Some of the previous statements have been edited and/or condensed by Successful Farming for style and clarity.