Page 7 2025 Logan County Spring Outlook LINCOLN DAILY NEWS March 2025 businesses that pass their income to the household and corporations. Approximately 45% of farm businesses used QBID, with larger-scale farms facing the most significant increases. The report found that very large farms could see an increase of $87,000 in their tax liability. Bonus depreciation was introduced in the TCJA and relates to capital expenses made by a farm business. The expiration of bonus depreciation would primarily affect large and very large farms, to the tune of up to $200,000 in increased taxes. Finally, the TCJA increased the exemption level for federal estate taxes to $11.18 million. This is set to revert to the previous exemption level of $6.98 million. If an estate exceeds the exemption level, they must file and potentially pay federal estate taxes. A decrease in the exemption level would cause the number of farms that must file federal estate taxes to increase to 3.9%, and the number of estates that would owe would rise to 1.1%. This decrease could generate approximately $1.2 billion. But, as with all things policy, it depends on whether Congress will act to prevent these expirations and changes. Whether Congress will act to extend or make these provisions permanent remains to be seen. Work directly with your tax professional to understand how these changes can impact your operation and strategies to protect your operation for the future. Another area of federal policy that has received more attention in recent weeks is trade, specifically tariffs imposed on other countries. But what exactly is a tariff? Why would the United States impose a tariff on other countries? What impacts would a trade war have on producers here in Central Illinois? Trade is a complex issue, but you don’t have to have a PhD in agricultural economics to understand how trade and tariffs work. Trade with other countries has been around since the days of the Silk Road, but the current state of global trade as we know it came around following World War II. Free trade agreements (FTAs) are agreements between countries that allow goods to flow between them with little to no trade barriers. Tariffs are some of the most common trade barriers and are taxes imposed by a country on goods being brought in (imported) or sent out (exported). FTAs can be bilateral or regional and can include other things, such as the free movement of people or a common currency. The most notable examples of FTAs are the United StatesMexico-Canada Agreement (USMCA) and the European Union (EU). A tariff is usually paid by the entity importing or exporting a particular good. For example, Continued --
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