(WASHINGTON D.C.) — On Thursday, one day ahead of President Donald Trump’s original target date of July 4th, the House finally passed the President’s signature tax and spending bill. The House narrowly advanced the Senate version of the legislation in a 218-214 vote. The tight margin followed hours of negotiations between Republican leaders and GOP holdouts as they pushed to meet a self-imposed July 4 deadline to send the bill to the president’s desk. (Read more on the passage: CLICK HERE)
Ag groups and leaders have begun sharing their reaction to the passage of the One Big Beautiful Bill, that includes many provisions favorable for agriculture surrounding crop insurance, key tax provisions and with critical animal health funding.
“At a time of great uncertainty for the agriculture economy, the support of Congress to enhance key programs and vital domestic markets for our farmers is critical,” said American Soybean Association President Caleb Ragland, a Kentucky soybean grower. “ASA thanks the House for maintaining several crucial farm programs and tax provisions that support U.S. soybean growers.”
National Association of Wheat Growers (NAWG) President Pat Clements issued the following statement saying “Thank you to members of the House and Senate for working together to send this bill to the President’s desk. This legislation will empower America’s wheat producers to invest in their operations, remain globally competitive, and support national food security and economic resilience. NAWG commends Congress for recognizing the vital role of wheat producers in the food supply chain and looks forward to continued collaboration with policymakers as the bill heads to the President for signature.”
National Cattlemen’s Beef Association (NCBA) Senior Vice President of Government Affairs Ethan Lane issued a statement on the final passage of the One Big Beautiful Bill saying in part that “America’s cattle farmers and ranchers are pleased by the final passage of the One Big Beautiful Bill. This legislation will protect family farmers and ranchers from the devastation of the Death Tax, it will avoid a massive year-end tax hike that could have put cattle operations out of business, it expands and protects many of the small business tax deductions that family producers rely on to save more of the hard-earned money, and it funds critical foreign animal disease prevention measures that protect cattle health.”
An extension of the 45Z tax credit for clean fuel production was also part of the legislation, which has been met with praise from the ag and biofuel industry on Thursday.
“The president wants to go big on American energy dominance, and this legislation delivers,” said Emily Skor, CEO of Growth Energy. “An extension of 45Z will unlock billions of dollars in new investments across rural America supporting strong, stable markets for America’s farmers and positioning American biofuel producers to compete in global fuel markets. We applaud our champions in the House and Senate, who fought hard to ensure that U.S. biofuel producers are positioned to deliver more clean energy, hold down fuel costs, and restore industrial might across the heartland.”
“From the very beginning of the budget reconciliation process, our goal was to advocate for the inclusion of tax policies that provide certainty, growth opportunities, and market stability for U.S. ethanol producers. The One Big Beautiful Bill Act passed today accomplishes that objective. We thank the many renewable fuel supporters in Congress and President Trump for ensuring American ethanol producers and farmers had a voice and seat at the table in this process,” said Geoff Cooper, RFA President and CEO. “The extension and modifications to the 45Z clean fuel production credit, reinstatement of the Research and Development immediate expensing provisions, and improvement of the 45Q carbon sequestration and utilization credit will provide a growth-oriented tax policy climate that ethanol producers can count on, improving the role that renewable fuels can play in helping reach our nation’s energy independence goals.”
Specifically, the OBBBA includes the following improvements to the 45Z Clean Fuel tax provision:
- Extends 45Z by two years, to the end of 2029.
- Restricts eligibility for 45Z to fuels made from feedstocks grown in the U.S., Canada, and Mexico.
- Retains full transferability throughout the term of the 45Z credit.
- Harmonizes indirect land use change emissions with actual data and evidence, resulting in zero ILUC penalty for corn ethanol.
Other key ethanol-related provisions in the budget reconciliation package include:
- Retains key enhancements to 45Q previously made in the Inflation Reduction Act and allows other carbon uses like enhanced oil recovery to qualify for equal credit values.
- Reinstates RD/RE immediate expensing provision that expired in 2022 under the Tax Cuts and Jobs Act.
“With budget reconciliation now in the rearview mirror, RFA, along with Congress and the Trump Administration, can now turn our attention to other key priorities to U.S. ethanol producers, such as legislation allowing for year-round E15 along with boosting the role of renewable fuels through robust renewable volume obligations under the RFS and a judicious resolution to the mounting number of pending Small Refinery Exemption petitions,” said Cooper.
American Coalition for Ethanol (ACE) today praised the inclusion and extension of the Clean Fuel Production Credit—commonly referred to as Section 45Z—in the final tax and spending package passed by Congress and headed to President Trump’s desk. ACE CEO Brian Jennings issued the following statement saying in part that “We’re grateful to our Congressional champions for their steadfast leadership to support and strengthen the 45Z credit, which is remarkable considering the fact most other IRA-era tax credits were limited or phased-out in the final package. While there were other improvements we had hoped to achieve in the final 45Z language, restoring transferability of the credit, removing indirect land use change (ILUC) penalties, and restricting feedstock eligibility to USMCA countries will strengthen the credit from its original version.”
House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15) said in a statement that “The One Big Beautiful Bill is a game-changer for America. This historic legislation delivers the largest tax cut in American history, providing direct relief to working families and boosting take-home pay. It slashes wasteful Washington spending, eliminates red tape, and makes major investments in border security, energy independence, and national defense. It is the codification of President Trump’s campaign promises. The One Big Beautiful Bill is a victory for rural America, making the largest investment in agriculture in decades, restoring integrity to SNAP, and saving millions of family farms from the death tax. This bill gives President Trump the tools he needs to keep America safe, strong, and free.”
Meanwhile, House Agriculture Committee Ranking Member Angie Craig (MN-02) shared her negative sentiment towards the bill saying in a statement that “Today marks a grave turning point for our country, one which leaves rural communities and farmers behind, and places us on the road toward increased hunger, less prosperity and fewer opportunities for working families. This bill takes food away from millions of children, seniors, veterans and people with disabilities. Congressional Republicans have sold out ordinary Americans to pay for tax breaks for the ultra-rich and large corporations. The Republican budget is a disgrace, and every single person who voted for it should be ashamed.”
