Will The Protecting American Farmlands Act be part of the One Big Beautiful Bill

This Act would exempt gains on sale of farmland if the land is sold to a farmer who farms it for at least 10 years

Photo by amir hamzah on Unsplash

Back in March of this year Senator Mitch McConnell (R-KY) had introduced The Protecting American Farmlands Act. It now appears that this Act has been included as part of the One Big Beautiful Bill that will be voted on today and sent to the House for reconciliation.

This Act would eliminate from the taxation the gain on selling farmland to farmer who would agree to farm the land for at least 10 years.

In order to qualify for the exemption, the land must have been in used in farming for at least 10 years before the sale. The farmer could elect to roll over all of part of the gain from farming into an IRA which could allow for additional tax-deferred growth on the gain rolled over. The gain rolled into the IRA would create basis in the IRA which would not be taxed when it is withdrawn from the IRA.