In 2025, two landmark pieces of legislation, the American Relief Act and the One Big, Beautiful Bill Act, sought to provide America’s farmers and agricultural landowners some much-needed relief in the wake of challenging years.

Together, they represent nearly $100 billion in new support for farmers, ranchers, and landowners, and their impact will ripple across commodity markets, conservation programs, tax policy, and disaster relief.

During a recent episode of the National Land Podcast, Ag Economist with the American Farm Bureau Federation, Daniel Munch, outlined what these bills entail and how they’ll impact ag producers around the country.

The American Relief Act: Emergency Measures for a Year of Disasters

The American Relief Act of 2025 was driven by necessity and urgency. “Congress needed to act, either by passing funding authorization bills or by passing what we all know as a continuing resolution, which just extends existing funding,” explained Daniel Munch, economist at the American Farm Bureau Federation. Without action, both a government shutdown and the expiration of key farm programs loomed.

The Act delivered $30 billion for agricultural producers, divided into $10 billion for economic assistance and $20 billion for natural disaster relief. As Munch noted, “You also had a year full of different natural disasters, economic disasters… Hurricane Helene, Hurricane Milton, flooding out in California and Minnesota.” These funds aimed to plug immediate gaps for producers battered by low commodity prices and weather extremes.

Still, Munch acknowledged the limits: “$20 billion is not enough to fill the holes farmers had seen from the past two years… It’s a great start, but farmers often can’t wait two years for assistance if they want to make ends meet.”

One Big Beautiful Bill Act: Long-Term Certainty

In contrast, the One Big Beautiful Bill Act took a broader, structural approach. Passed through the reconciliation process, it gave the administration a chance to push forward a sweeping agenda. Importantly for agriculture, it extended and expanded several cornerstone programs.

“This bill… replicates and extends much of what we consider in a traditional farm bill,” said Munch. That means commodity support through Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) was locked in through 2031, alongside dairy margin coverage and enhancements to crop insurance. Conservation programs such as EQIP, CSP, and ACEP also received long-term funding, bolstered by redirected Inflation Reduction Act dollars. 

Beyond that, the bill included disaster aid enhancements, new trade promotion funding, and critical tax provisions, most notably, making the estate tax exemption permanent at $15 million per individual or $30 million per couple. Together, these measures create a framework of stability for producers, landowners, and lenders, reinforcing confidence in the agricultural economy for the decade ahead.

“These program pieces… help provide more confidence in the marketplace for producers,” Munch emphasized, pointing to how program stability underpins both farm economics and land values.

Land Values and Market Confidence

One of the most tangible signs of these legislative impacts is in land markets. USDA’s latest data shows farmland values rising 4.3% year-over-year, averaging a record-high $4,350 per acre. Yet growth is slowing compared to earlier years, and according to Munch, government support is part of what is keeping the market stable:

“In order for there to be confidence from lenders to provide operating lines of credit, there’s got to be some confidence in the bottom line for producers. A lot of these program pieces… help support that confidence.”

A Foundation, but Not the Finish Line

Taken together, the two bills provide short-term relief and long-term certainty, a combination that stabilizes agriculture in an otherwise volatile year. But challenges remain. As Munch pointed out, “There are still gaps that need to be fixed, but it provides a little bit more stability to the farm economy.”

For now, however, farmers and landowners can take some comfort in knowing that critical safety nets and support structures have been reinforced for the decade ahead. If you have questions about how these pieces of legislation may impact the agricultural economy in your area, get in touch with your local Land Professional today!