Backed by a 51-50 margin-secured with Vice President J.D. Vance's tie-breaking vote-the legislation includes key provisions for agriculture: permanent tax relief for farmers, enhanced commodity program supports, and expanded crop insurance options. Ag groups are largely supportive of the package, though they raised flags over potential amendments affecting program eligibility.

The Senate Agriculture Committee, led by Sen. John Boozman (R-AR), included a boost in reference prices for Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs. Under the proposal, PLC reference prices would increase to 88% of the Olympic five-year average, giving producers access to the higher of ARC or PLC payments in 2025.

Other changes include raising the payment limit from $125,000 to $155,000 (adjusted for inflation), and eliminating the adjusted gross income cap for those earning most of their income from farming or forestry.

Ag leaders across commodities welcomed the changes. Kenneth Hartman Jr. of the National Corn Growers Association praised the bill for addressing longstanding concerns among corn producers. Amy France of Sorghum Producers noted it strengthens their position in a "volatile global market" by safeguarding risk management tools and supporting biofuel incentives.

The American Soybean Association, National Rice Producers, Crop Insurance Professionals, and National Pork Producers also applauded the package's approach to reference prices, export support, animal health funding, and conservation investments. Many highlighted the "Bacon and Boozman amendments" as critical to putting agriculture back at the center of U.S. budget priorities.

Still, there was tension around an amendment introduced by Sen. Chuck Grassley (R-IA), aiming to tighten the definition of "actively engaged" in farming-an eligibility requirement for receiving program payments. Over 20 farm groups opposed the measure, warning it would complicate compliance for many operations. After discussions with Boozman, Grassley withdrew the amendment, agreeing to revisit it in the upcoming farm bill negotiations.

The bill's broader fiscal impact drew scrutiny as well. According to the Penn Wharton Budget Model, the plan would increase the primary deficit by $3.1 trillion between 2025 and 2034 and reduce GDP by 0.3% in the long term. Notably, 80% of tax benefits are projected to go to the top 10% of earners, raising equity concerns among policymakers.

While the House must still vote on the final version before the July 4 deadline, this Senate action marks a decisive step forward. The farm provisions offer a temporary bridge until a new, comprehensive farm bill is finalized later this year. The sector remains cautiously optimistic but vigilant, especially around issues of payment eligibility, supply chain support, and fiscal sustainability.