Key Benefits for Cattle Producers in One Big Beautiful Bill Act

By Andi Anderson

The One Big Beautiful Bill Act (OBBA), signed into law on July 4, delivers key updates for agriculture, especially for cattle producers. The nearly 900-page law contains several provisions aimed at supporting farmers and ranchers.

One major change is to the Livestock Forage Disaster Program (LFP). Known by many as the “FSA drought program,” LFP now offers faster and larger payments during droughts.

 Before, producers received one payment for an eight-week D2 drought. Under the new rules, producers can now receive two monthly payments if their county has D2 drought conditions for seven out of eight consecutive weeks.

Plus, a single payment now triggers after just four consecutive weeks of D2 drought during grazing season. These changes help producers relying on grazing get quicker financial support.

Another important update is the Permanent Estate Tax Exemption. The OBBA makes a $15 million exemption permanent for individuals, or $30 million for married couples. This benefits family-owned farms by reducing the risk of selling land or livestock to pay estate taxes when transferring farms to the next generation. The bill also locks in the 20% small business tax deduction, easing financial pressures on agricultural businesses.

Though not focused on cattle, the Poultry Insurance Pilot Program could help many livestock producers who also grow poultry.

This program directs the creation of an index-based insurance for poultry growers to cover rising utility costs caused by extreme weather. The program will be developed with industry input and tested in key poultry-producing states within two years.

These updates reflect a strong commitment to supporting farmers and ranchers in tough times. With better drought relief, estate tax protection, and new insurance options, the OBBA aims to strengthen American agriculture and secure family farms for the future.

Photo Credit: gettyimages-shotbydave