The House Ag Committee Beneficial AGI and Payment Limit Proposals
The House Ag Committee's Farm Bill proposal includes many beneficial changes on AGI and Payment limits.
The House Ag Committee Farm Bill proposal released today has some major changes to AGI and Payment limits and they will be beneficial for many farmers.
First, the current AGI limit for farmers is $900,000 per taxpayer ($1.8 million for farmers located in community property states and may be up to that amount in other states). This proposal does not change that AGI limit.
Current payment limits remain at $125,000, however, farmers who can show that more than 75% of their AGI comes from farming will see that payment limit increase to $155,000 in 2025 and then adjusted for inflation each year thereafter.
The proposal also specifically states that the following income will be considered farm income:
