Tax season delivers major wins for farmers

As tax season gets underway, farmers and manufacturers across Iowa are once again sitting down with their accountants, reviewing receipts and making tough decisions about how to reinvest in their operations.

For many family farmers, tax season isn’t just tedious paperwork — it is a reminder of how much unnecessary federal policies and taxes affect their ability to survive, grow and pass their businesses to the next generation.

Agriculture is the backbone of Iowa’s economy. Nearly one in five jobs in our state is connected to farming. Making up 2 percent of our nation’s population, farmers feed and fuel not only our entire country, but the world.

Representing one of the largest agriculture districts in the country, I’ve worked closely with President Donald Trump to deliver tax policies that recognize and address the realities our farmers face: high input costs, tight margins and assets that are valuable on paper but difficult to liquidate.

I worked with President Trump on the Working Families Tax Cuts to deliver meaningful relief for farmers, rural families, manufactures at a time when inflation and uncertainty inherited from the President Joe Biden administration squeezed household budgets tight. These tax cuts prevented a massive tax hike, lowered rates for families and put more money back into our rural communities. For farmers, they also delivered provisions that directly support long-term stability and growth.

One of the most important victories for farmers was relief from the Death Tax, which was incorporated into the Working Families Tax Cuts through my bill. The Death Tax is an egregious double tax that hits family farms at the worst possible time: When a loved one has passed away.

Because farm assets like land, equipment and barns aren’t easily sold, this tax often forces families to sell off acres or shut down operations just to pay the IRS. That is simply cruel.

Through the Working Families Tax Cut, the Death Tax exemption increased to $15 million, giving families breathing room and protect multi-generational operations from being dismantled. This law ensures that farmland stays in the hands of Iowa families, not foreign adversaries.

The Working Families Tax Cuts also strengthened Section 199A, the small business deduction that allows pass-through entities like family farms to deduct up to 20 percent of their qualified business income. This provision is a lifeline for farmers and manufacturers, helping them reinvest in equipment, hire workers and keep their operations competitive.

Immediate expensing and 100 percent bonus depreciation are another major win for agriculture. These provisions will allow farmers to fully deduct the cost of new equipment, machinery and infrastructure in the year they’re purchased.

That means when a farmer invests in a new combine, grain bin or livestock facility, the tax cut works for them — not against them. Immediate expensing lowers the cost of doing business, encourages modernization and helps Iowa farmers stay at the forefront of a competitive global market.

As the only member of Congress serving both the House Ways and Means Committee and the House Agriculture Committee, I’ve been committed to ensuring that our tax code rewards our farmers hard work and supports rural America.

Tax season is a reminder that smart, pro-growth policies matter. By cutting unnecessary taxes, expanding immediate expenses and protecting small business deduction, we’re giving farmers the support they need to ensure that farmland goes into the next generation of Iowans.

I will continue to fight to ensure that Iowa farmers can keep more of what they earn, keep farmland in the hands of Iowans, and continue feeding and fueling America for years to come.

This op-ed was originally published in the Northwest Iowa Review on February 16, 2026.