At a time when farm income is under growing pressure, the One Big Beautiful Bill is reshaping the farm safety net in ways that go well beyond bigger checks or better crop insurance coverage. According to Farm CPA Paul Neiffer, the legislation could quietly push producers toward fundamental changes in how their farm businesses are structured, decisions that could have long-term implications for taxes, payments, and succession planning.
While the bill was signed into law in July of 2025, there’s still guidance that needs to be set before farmers can make vital decisions. And some of the most favorable changes- like to crop insurance coverage- won’t go into effect until late this year.
While much of the early conversation around the bill has focused on higher reference prices and stronger crop insurance subsidies, during the 2026 Top Producer Summit, Neiffer told attendees the real impact may not be fully understood yet, and farmers should be paying close attention.
“This bill changes the rules we’ve all been operating under for the last 20 years,” Neiffer says. “And when the rules change, the structure of the farm suddenly matters a lot more than it used to.”
Financial Stress Is Already Building in Farm Country
The bill arrives against a backdrop of tightening farm finances. USDA’s updated net farm income forecast showed a sharper-than-expected decline for 2025, with early projections for 2026 offering little comfort, particularly for row-crop producers, a trend doesn’t surprise Neiffer.
“It peaked out in 2022, and it’s definitely been going down ever since,” he explains. “If you’re a row-crop farmer, 2026 is probably going to look a lot like 2025 unless something changes on the price side.”
While government payments will help stabilize income, Neiffer is blunt about what would happen without them.
“Without ARC, PLC, the FSA payments, the SDRP top-ups, without all of that, most row crop farmers would absolutely be struggling right now,” he says.
Payments tied to the One Big Beautiful Bill are expected to start flowing in October, providing a critical backstop during a period when margins remain thin and balance sheets are tightening across large parts of the country.
Crop Insurance: One of the Bill’s Biggest Wins
Neiffer gives the crop insurance provisions in the One Big Beautiful Bill high marks , calling them one of the clearest positives for producers.
“I’d give it a B-plus to A-minus,” says Neiffer.
Why such a high grade? The bill boosts premium subsidies across most revenue protection levels:
- Coverage levels from 55% to 75% receive a 5 percentage-point increase in premium subsidies.
- 80% and 85% coverage levels see a 3 percentage-point increase.
- Supplemental Coverage Option (SCO) now extends up to 90% coverage, and farmers can now pair ARC with SCO, something previously prohibited.
- SCO subsidies jump from 65% to 80%, making higher coverage far more affordable.
For many producers, especially wheat growers, these changes significantly reduce out-of-pocket costs while expanding protection.
Beginning farmers also receive a major boost. Previously limited to a 10% premium subsidy bump for five years, the bill expands the benefit to 10 years, with even higher subsidies in the early years.
“For young farmers, it can now make financial sense to farm on their own instead of with their parents,” Neiffer said. “From a family standpoint, they’re actually going to make more money.”
Prevent Plant Still a Pain Point
Not everything is a win. One of the main reasons Neiffer doesn’t give the crop insurance changes a straight A is because of changes to prevent plant, something that remains a concern, especially in high-risk regions like Arkansas and the Dakotas.
Under previous rules, farmers could buy up an additional 10% of coverage. That was later reduced to 5%, and Neiffer says USDA’s Risk Management Agency is still discussing cutting or eliminating that option entirely.
“That extra 5% really matters when you’ve got too much water,” he said.
While not enough to outweigh the bill’s positives, the issue drags down what could otherwise be a near-perfect crop insurance package.
Beginning Farmers See Expanded Incentives
The bill also significantly expands benefits for beginning farmers, extending premium subsidy incentives from five years to ten , while also increasing the subsidy percentages in the early years.
“Before, they got a 10% bump, but only for five years,” Neiffer says. “Now it’s 15% in years one and two, 13% in year three, 11% in year four, and 10% all the way through year ten.”
That change, he says, could alter how farm families bring the next generation into the operation.
“For a lot of young farmers, it may actually make more sense financially to farm on their own instead of farming with their parents,” Neiffer says. “If they’re part of the parents’ operation, they may or may not qualify for those premium subsidies. On their own, they do.”
From a purely financial standpoint, Neiffer says some families could generate more income overall by restructuring how younger operators enter the business.
Prevent Plant Remains a Lingering Concern
Despite the positives, not every provision landed well with producers. Prevent plant coverage remains a contentious issue, particularly in regions prone to excess moisture.
“Under the old rules, you could buy up an extra 10% of prevent plant coverage,” Neiffer adds. “That got cut to 5%, and now RMA is still talking about cutting or eliminating that extra 5% altogether.”
For producers in places like Arkansas and the Dakotas, that reduction matters.
“When you’ve got too much water, that extra coverage helps mitigate a really bad situation,” he says. “Losing it would hurt.”
Even so, Neiffer says the overall crop insurance package remains strong.
“That’s really the only thing dragging it down just a little bit,” he said.
ARC and PLC Changes Offer Ongoing Protection
Beyond insurance, Neiffer points to ARC and PLC changes as one of the most important income stabilizers in the bill, especially because they are designed to work over time, not just in a single marketing year.
“The increase in reference prices and effective reference prices isn’t a one-shot deal,” he says. “It happens this year, it happens next year, and it keeps happening as long as prices stay depressed.”
The bill also includes what Neiffer describes as an “automatic put” built into ARC and PLC, designed to cushion farmers during prolonged periods of weak prices.
“That’s going to help smooth out income over multiple years, and right now, that’s exactly what farmers need,” says Neiffer.
The Structural Shift Farmers May Not Be Ready For
The most overlooked part of the One Big Beautiful Bill, and potentially what may be the most consequential part of the legislation, is how it changes payment limits tied to farm business structure.
Under old rules, LLCs and S corporations were often limited to a single payment cap. The new law shifts that framework, allowing multiple payment limits based on the number of equal owners , depending on how the operation is structured.
That opens the door to significant restructuring. According to Neiffer:
- General partnerships may move to LLCs for liability protection and expanded payment eligibility.
- C corporations, which remain stuck with a single payment limit, may convert to S corporations.
- Some farms are already making the switch.
“I’ve talked to several farmers already that either have switched or will be switching,” Neiffer says. “And it’s completely because of the One Big Beautiful Bill.”
Still, he urges caution. USDA guidance on how these new rules will be applied has not yet been released.
“Before I tell anyone to change their structure, we need that guidance,” Neiffer says. “Otherwise, you risk unintended consequences that wipe out the benefit.”
A Note of Caution on Taxes and Spending
Neiffer also warns producers not to let tax provisions drive equipment purchases or expansion decisions.
“There are a lot of good tax provisions in this bill,” he said. “But farmers tend to get hooked on them.”
He points specifically to bonus depreciation as an area of concern.
“They go out and buy something just because they can deduct it,” he says. “If they finance it with debt, they don’t always think about what happens the next year, or the year after that, or the year after that.”
The result, he says, can be financial strain that lasts long after the tax benefit fades.
Guidance Still Needed Before Big Decisions
Despite the potential advantages of restructuring, Neiffer urges farmers to have patience. USDA guidance on how the new payment limit rules will be applied has not yet been released.
“Before I’m telling anybody to change their structure, we really need that guidance,” he says. “I worry about the law of unintended consequences, where we think the rule is going to work one way, and then something else kicks in and negates the benefit.”
Farmers were expecting clarity by the end of 2025. That hasn’t happened yet.
“We’re already almost to March,” Neiffer says. “But we should have it any day now.”
When it arrives, Neiffer believes it could prompt some of the most significant farm business decisions producers have faced in years , driven not just by markets, but by policy.