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American Focus > Blog > Environment > Trump’s tax bill could be a major win for Big Ag. Everyone else? Not so much.
Environment

Trump’s tax bill could be a major win for Big Ag. Everyone else? Not so much.

Last updated: July 3, 2025 2:51 am
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Trump’s tax bill could be a major win for Big Ag. Everyone else? Not so much.
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The U.S. House of Representatives passed President Donald Trump’s megabill back in May, including a loophole that would allow large farms to maximize federal subsidies. As the bill moved to the Senate, efforts were made to expand this loophole, making it easier for industrial farms to benefit from subsidies. However, Senator Chuck Grassley proposed an amendment to ensure that small and medium-sized family farms also had access to farm safety nets.

Despite Grassley’s efforts, the Senate agricultural committee chair convinced him to drop the amendment, and the bill was passed without it. This victory for Trump highlights the administration’s priorities of cutting funding for small farmers while providing large commodity farms with substantial bailouts. This move has been criticized for exacerbating inequality in the food system.

Both the House and Senate versions of the bill contain a budgeting maneuver that redirects climate-targeted funds to general farm programs, removing the focus on climate-specific projects. Additionally, subsidies for commodity farms are set to increase by $50 billion in the Senate bill, further benefiting larger farms at the expense of smaller ones.

One significant difference between the House and Senate bills is the handling of the Supplemental Nutrition Assistance Program (SNAP). The Senate bill shifts some financial responsibility onto states, potentially increasing food insecurity for millions of Americans. The bill also introduces new work requirements for SNAP recipients, further limiting eligibility and reducing federal spending on the program.

Another concerning aspect of the bill is the significant increase in funding for Immigration and Customs Enforcement (ICE), which could have serious implications for farmworkers and food production. With a large percentage of crop farmworkers being immigrants without legal status, increased ICE funding could disrupt the agricultural workforce and impact food production.

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Overall, the Senate bill reflects the Trump administration’s priorities of supporting large commodity farms while cutting funding for small farmers and public benefit programs. The implications of these policies could deepen inequality in the food system and have lasting effects on food security and agricultural labor. The recent budget bill moving through Congress has sparked concerns about its impact on the broader food economy and food chain. Senator Grassley’s successful advocacy for a provision related to agriculture has raised questions about the long-term effects on farmers and consumers. The extension and increase for a federal credit for small producers of biofuels, derived from food crops like corn, may have unintended consequences for the food system.

Critics argue that the investment in biofuel developments could shift the focus away from food production, turning farmers into energy producers. Jim Walsh, policy director at Food & Water Watch, warns that this shift could lead to higher food costs for consumers and undermine efforts to build true clean energy projects.

For individuals like 20-year-old Cale Johnson, the stakes of the budget bill are personal. Growing up in Nebraska, his family relied on SNAP benefits to afford groceries. Despite this assistance, they still had to rely on food pantries and community drives to avoid hunger. Johnson believes that the steep cuts to SNAP in the bill are a betrayal of those who rely on the program, including many conservative voters in Nebraska.

The implications of the budget bill extend beyond the numbers on paper. It is a reflection of how policymakers prioritize certain industries over others and overlook the needs of those most vulnerable. As the bill progresses through Congress, it is essential to consider the ripple effects on the economy, people’s budgets, and ultimately, their well-being.

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In conclusion, the budget bill’s impact on the food economy and food chain is complex and multifaceted. It is crucial for policymakers to consider the broader implications of their decisions and prioritize the well-being of farmers, consumers, and vulnerable populations. Only by taking a holistic approach can we ensure a sustainable and equitable food system for all.

TAGGED:bigBillmajortaxTrumpswin
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