Several key provisions of the 2017 Tax Cuts and Jobs Act are scheduled to expire this year, and the American Farm Bureau Federation (AFBF) is urging Congress to act. The expiring measures have provided critical tax relief for farm families, many of whom are already facing tight margins and rising costs.
AFBF Associate Economist Samantha Ayoub explains that while corporate tax cuts were made permanent under the 2017 law, the reductions to individual income taxes began phasing out in 2022. The most significant tax increases are expected to hit at the end of this year as more provisions expire.
One of the most pressing concerns is the looming change to the estate tax. If Congress does not intervene, the current estate tax exemption (set at just over $13 million) will be slashed in half on January 1, 2026, dropping to $7.61 million. That change could have serious consequences for family-owned farms, where land values alone often exceed the exemption threshold.
For many farm families, the death of a loved one won’t just bring emotional loss—it could also bring a crushing financial burden. Without sufficient estate tax relief, heirs may be forced to sell land, equipment, or the entire operation just to cover the tax bill. That threatens not only the future of individual farms, but also the broader fabric of rural communities that depend on agriculture.
The Farm Bureau is calling on lawmakers to extend or make permanent the provisions that protect family farms, warning that failure to act could jeopardize generational legacies across the country.