“One Big Beautiful Bill” Includes Key Dairy Priorities

The One Big Beautiful Bill Act included dairy-focused provisions aligned with key priorities for Edge Dairy Farmer Cooperative.

It includes resetting the Dairy Margin Coverage program, expanding trade promotion funding, and increasing conservation funding for EQIP and CSP. In addition, the bill updated key portions of the farm bill, as well as extending multiple other tax and spending changes.

The multi-trillion-dollar tax and spending bill includes a wide range of provisions aimed at tax, energy, health care, education, immigration/border, national security, and food and agriculture. The bill included parts of the long-awaited farm bill, giving direction and funding to various parts of the bill.

“We are pleased to see that many of the dairy issues we have been working toward, including important provisions in the farm bill, were included in the OBBBA,” says Edge President Heidi Fischer. “We have more work to do with the remainder of the farm bill, but are hopeful the full bill will be done soon.”

Key Edge Priorities Included In The OBBBA:

• Renewal of the Dairy Margin Coverage (DMC):
  • Extending the program through 2031 
  • Increase of Tier 1 coverage from 5 to 6 million pounds per year
  • Update to the DMC production history calculation to be based on the highest production year of 2021, 2022 or 2023
  • Allowance for producers to receive a 25% premium discount for locking in their coverage for the duration of the bill
• Expansion of trade promotion funding for key existing programs
• Increase in mandatory funding for conservation programs such as EQIP and CSP
• Funding for mandatory dairy cost surveys every 2 years that may help provide more accurate data for Federal Milk Marketing Order discussions
• Increase in funding for animal health programs that help to prevent, control and eradicate animal diseases, such as the outbreak of H5N1 in dairy cattle

In addition to the agriculture components, extending business tax provisions will help dairy farmers navigate the road ahead in commodity environments. OBBBA also:

• Extended crop insurance benefits for beginning farmers and ranchers from five to ten years
• Extends estate tax and gift tax exemptions and increases the basic inclusion amount from $5 to $15 million ($30 million for couples), and makes it permanent
• Extends many of the tax credits in the original Tax Cut and Jobs Act that affect farmers and processors, including 199A, permanent extension of Section 199A QBI, 100% bonus depreciation and the New Markets Tax Credit

“While we are pleased with the inclusion of many of our key priorities, we still have work to do to finalize the farm bill,” Fischer says. “We will continue to work closely with members of Congress to see that legislation that impacts our farms and our businesses is sensible and provides the direction we need, including codifying timely and accurate payments into the farm bill.”