Peace Garden News

Senator John Hoeven, chairman of the Senate Agriculture Appropriations Committee and a senior member of the Senate Agriculture Committee, held a roundtable with North Dakota farm leaders in Fargo to discuss key provisions included in the One Big Beautiful Bill. The legislation incorporates updates to reference prices for agricultural programs, enhancements to crop insurance, an extension of the sugar program, and improvements to livestock disaster programs.

Hoeven emphasized the importance of these measures for farmers and ranchers. “The One Big Beautiful Bill provides significant tax relief for working Americans, including our farmers and ranchers, but we also secured the heart and soul of the farm bill in this legislation,” said Hoeven. “That includes priorities like updated reference prices for this crop year, stronger and more affordable crop insurance, as well as updates to the sugar program and improvements to livestock disaster programs. These are the core pieces of the farm bill and vital to farm country. The Senate has now passed what is essentially a seven year farm bill.”

The bill increases reference prices for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) by 10% to 20%, depending on commodity. It also establishes automatic future increases using inflation adjustments and improved price escalators so that reference prices stay current with market conditions.

Producers will have immediate access to new safety net benefits beginning with this crop year, allowing them to receive higher ARC or PLC payments based on updated reference prices. According to Hoeven’s office, these changes are expected to provide tens of millions of dollars in relief for North Dakota farmers in 2025 alone.

Key aspects from Hoeven’s FARMER Act are also included. Premium support for individual-based coverage will rise by an additional 3-5% at nearly all levels above a base starting point of 55%. The Supplemental Coverage Option coverage level is raised from 86% to 90%, while premium support jumps from 65% up to 80%.

The sugar program is extended through 2031 with an increased loan rate intended to better reflect current market conditions.

Improvements were made as well in livestock disaster assistance programs. For example, Livestock Indemnity Program payments are set at full market value for losses due to federally protected predators and at 75% for weather or disease-related losses. The Livestock Forage Program will now offer monthly payments during periods when counties experience severe droughts lasting four consecutive weeks or more.

On tax policy, permanent extensions are provided for individual tax rates under provisions from previous reforms such as the Tax Cuts and Jobs Act—preserving $4 trillion in tax breaks—and raising potential take-home pay by up to $10,900 over four years for typical families through economic growth measures linked with these changes.

For agriculture producers specifically, permanent relief from estate taxes is established by setting exemptions at $15 million ($30 million if married filing jointly), adjusted annually for inflation. Section 199A pass-through deductions—for both small businesses generally and agricultural cooperatives—are permanently extended along with other business-focused provisions such as increased expensing limits (Section 179), interest expense allowances capped at thirty percent, and full bonus depreciation.