With the U.S. House passing the Inflation Reduction Act (IRA) with a vote of 220 to 207, it now shifts to the President for the final signature. If President Biden signs the act, it will enact a corporate minimum tax of 15% to cover the bill’s $740 billion plan. What can be expected from the agricultural sector? Policies around biofuels, farm debt, conservation and on-farm energy costs, namely.

Policies producers should expect to see coming down the pipeline include:

1. A $1/gallon tax credit for biodiesel
2. A $5.3 billion farm debt relief package
3. A collective $3 billion for renewable energy projects in rural areas, including USDA’s Rural Energy for America Program
4. An $18 billion slated for four conservation programs
5. Wildlife prevention and climate resiliency projects in public and private forests range around $5 billion.

While the bill passed the house, it was done through party lines. No House republicans voted for the bill, citing increased monetary pressure on small businesses and manufacturers. President Biden is expected to sign the bill later this week.

Read more on the IRA here.