Tax Reform and Support for Kentucky's Farmers in 2025

By Blake Jackson

The 2025 Kentucky General Assembly is set to convene on Tuesday, January 7, with Part I lasting until January 10.

Part II will begin on February 4 and run until the legislative recess on March 14, followed by a ten-day veto period starting on March 15. The session is scheduled to adjourn sine die on March 28.

During this legislative period, the Kentucky Farm Bureau's State Board of Directors has approved a set of legislative priorities, designed to guide the organization’s efforts to advocate for agriculture and rural issues in the state.

These priorities, which will be shared with all members of the Kentucky General Assembly, focus on key areas like agriculture programs, services, and taxation.

In terms of agriculture, the Kentucky Farm Bureau advocates for the continued allocation of 50% of the Master Settlement Agreement funds to the Agricultural Development Board, with the goal of enhancing farm income in production agriculture.

Additionally, the Farm Bureau supports continued funding for the Soil Erosion and Water Quality Cost-Share Program and emphasizes the need for a well-funded and well-managed Kentucky Department of Agriculture to effectively serve the state's farmers.

Regarding taxation, the Kentucky Farm Bureau is pushing for an update to the Selling Farmer Tax Credit, increasing it to $25,000 per year if farmland is sold to an active farmer, and up to $50,000 per year if sold to a beginning farmer.

The organization also calls for tax reform to foster a competitive business climate and opposes any moves to freeze the state real property tax rate.

Furthermore, the Farm Bureau supports maintaining Kentucky’s sales tax exemptions for production agriculture and upholding provisions in House Bill 44, which would limit revenue from property taxes to 4% plus new growth, with any increases beyond that going to voters for approval.

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