Effect of the Tax Cuts and Jobs Act on Farmers

Abstract

In late 2017, President Trump signed into law the Tax Cuts and Jobs Act, the first major tax reform since the Reagan tax cuts in the 1980s. This tax reform created many questions about how it would impact different sectors of the economy. In particular, it had the potential to affect many business decisions for farmers and ranchers across the country. This study tries to answer the questions of whether farmers in Iowa believe that the Tax Cuts and Jobs Act would be beneficial to their operations, as well as specific ways they expect the reform to affect their business decisions. The study utilized a survey sent to farmers in a localized area in Iowa. Due to the limited scope of the survey, it should not be used to create generalizations regarding the farming community's perceptions as a whole. After the analysis of the survey results, the Tax Cuts and Jobs Act does not seem to have been a direct benefit or detriment to Iowa farmers.