Senate Moves Ahead on Tax, Budget Bill, Modifies 45Z Clean Fuels Credit to Match House – DTN Progressive Farmer
Report on Recent Senate Bill Impacting Agriculture, Housing, and Food Aid with Emphasis on Sustainable Development Goals (SDGs)
Introduction
This report analyzes the recent Senate bill addressing housing, agricultural provisions, tax changes, and food aid programs. The bill’s implications are examined through the lens of the United Nations Sustainable Development Goals (SDGs), focusing on goals such as SDG 1 (No Poverty), SDG 2 (Zero Hunger), SDG 8 (Decent Work and Economic Growth), SDG 11 (Sustainable Cities and Communities), and SDG 15 (Life on Land).
Housing and Land Management
Senator Lee proposed an amendment aimed at increasing housing availability in high-demand areas, which aligns with SDG 11: Sustainable Cities and Communities. However, the amendment was withdrawn due to concerns about land ownership and management:
- Disagreement among western-state Republicans.
- Concerns over land potentially being allocated to foreign interests rather than American families.
- Senator Lee emphasized the need to reduce federal land holdings to prevent mismanagement and preserve land for future generations, supporting SDG 15: Life on Land.
Tax Provisions Supporting Small Businesses and Economic Growth
The bill includes several tax provisions designed to support small businesses and stimulate economic growth, contributing to SDG 8: Decent Work and Economic Growth:
- Permanent 20% deduction for qualified business income for smaller businesses (House proposes 23%).
- Reinstatement of 100% bonus depreciation for equipment purchases from 2025 to 2030.
- Increase of Section 179 deduction for smaller businesses to $2.5 million.
- Increase in estate tax exemption to $15 million for individuals and $30 million for married couples starting in 2026, indexed for inflation.
Agricultural Provisions and Food Security
The bill allocates approximately $67 billion over 10 years to improve the farm safety net and agricultural programs, advancing SDG 2: Zero Hunger and SDG 12: Responsible Consumption and Production:
- Increase in reference prices under the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs, with USDA providing higher payment rates for 2025.
- Enhancements to Dairy Margin Coverage (DMC) and reductions in crop-insurance premiums.
- Increase in payment limits from $125,000 to $155,000 for individuals, adjusted for inflation.
- Removal of income caps for farmers or entities deriving 75% or more of income from agriculture or forestry.
- Authorization for USDA to enroll up to 30 million new base acres based on production history.
- Reallocation of up to $16 billion from the Inflation Reduction Act to USDA conservation programs, though with a net forecasted cut of $1.8 billion compared to previous funding levels.
- Expansion of disaster aid for livestock producers and doubling of funding for USDA trade promotion programs.
Food Aid Program Cuts and Social Impact
The bill proposes significant reductions in food aid, impacting SDG 1: No Poverty and SDG 2: Zero Hunger:
- $211 billion cut from the Supplemental Nutrition Assistance Program (SNAP).
- Tightened work requirements for able-bodied adults, individuals aged 55-64, and parents with children over 14.
- Restrictions on the Agriculture Secretary’s ability to waive work requirements in high-unemployment areas.
- Estimated $92 billion reduction in SNAP spending over 10 years due to work requirements.
- States required to cover up to 15% of SNAP benefits based on error rates starting in 2028, shifting over $4 billion annually to state budgets.
- Increased state responsibility for administrative costs.
Conclusion
The Senate bill presents a complex mix of provisions that affect housing, agriculture, taxation, and food aid. While some measures promote economic growth and agricultural sustainability, significant cuts to food aid programs may adversely affect vulnerable populations. The bill’s alignment with the Sustainable Development Goals highlights the need for balanced policies that support economic development, environmental stewardship, and social equity.
References and Further Reading
- Midwest Food Banks Warn They Can’t Fill Gap if SNAP is Cut in Budget Bill
- Senate Ag Reconciliation Bill Offers Farmers Better Options for 2025 Programs
- Six Tax Changes Made for Farm Businesses in the ‘One Big Beautiful Bill’
For further information, contact Chris Clayton at Chris.Clayton@dtn.com or follow on X @ChrisClaytonDTN.
1. Sustainable Development Goals (SDGs) Addressed or Connected
- SDG 1: No Poverty – The article discusses changes to the Supplemental Nutrition Assistance Program (SNAP), which is a critical social safety net for low-income populations.
- SDG 2: Zero Hunger – Food aid cuts and agricultural support programs are central themes, impacting food security and agricultural productivity.
- SDG 8: Decent Work and Economic Growth – Tax provisions for small businesses and changes to agricultural income support relate to economic growth and support for decent work.
- SDG 12: Responsible Consumption and Production – Conservation programs and agricultural risk coverage relate to sustainable management of natural resources.
- SDG 15: Life on Land – Land management, conservation funding, and federal land use policies are discussed, which connect to sustainable land use and biodiversity.
2. Specific Targets Under Identified SDGs
- SDG 1 – Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, to achieve substantial coverage of the poor and vulnerable (related to SNAP program changes).
- SDG 2 – Target 2.3: Double the agricultural productivity and incomes of small-scale food producers (related to farm safety net improvements and payment limits).
- SDG 2 – Target 2.4: Ensure sustainable food production systems and implement resilient agricultural practices (related to conservation programs and disaster aid).
- SDG 8 – Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, and innovation (related to tax provisions for small businesses).
- SDG 12 – Target 12.2: Achieve sustainable management and efficient use of natural resources (related to conservation funding and land management).
- SDG 15 – Target 15.1: Ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems (related to federal land management and conservation budget changes).
3. Indicators Mentioned or Implied to Measure Progress
- Indicator for SDG 1.3: Coverage of social protection systems such as SNAP participation rates and benefit levels.
- Indicator for SDG 2.3: Agricultural income levels, payment limits, and participation in farm safety net programs (PLC, ARC, DMC).
- Indicator for SDG 2.4: Area of land under sustainable agricultural practices and conservation program enrollment (e.g., number of base acres enrolled).
- Indicator for SDG 8.3: Number of small businesses benefiting from tax deductions and depreciation incentives.
- Indicator for SDG 12.2 and 15.1: Budget allocations for conservation programs, acreage of federal land managed sustainably, and funding levels for disaster aid and conservation.
- Additional implied indicators: SNAP work requirement compliance rates, state cost-sharing percentages for SNAP, and changes in food bank usage as a proxy for food insecurity.
4. Table: SDGs, Targets and Indicators
SDGs | Targets | Indicators |
---|---|---|
SDG 1: No Poverty | Target 1.3: Implement social protection systems for the poor and vulnerable | SNAP participation rates; SNAP benefit levels; compliance with work requirements |
SDG 2: Zero Hunger |
Target 2.3: Double agricultural productivity and incomes Target 2.4: Ensure sustainable food production systems |
Agricultural income levels; payment limits under PLC, ARC, DMC programs; acreage enrolled in conservation programs; disaster aid funding levels |
SDG 8: Decent Work and Economic Growth | Target 8.3: Promote policies supporting productive activities and entrepreneurship | Number of small businesses utilizing tax deductions and depreciation benefits |
SDG 12: Responsible Consumption and Production | Target 12.2: Achieve sustainable management of natural resources | Budget allocations for conservation; sustainable land management acreage |
SDG 15: Life on Land | Target 15.1: Conserve and restore terrestrial ecosystems | Federal land management practices; conservation program funding; acreage under conservation |
Source: dtnpf.com