The Missouri Legislature wrapped up its regular 2025 session and brought some big wins for farmers, as well as a few setbacks.
“From an agriculture standpoint, it was a banner year,” says Ben Travlos, Missouri Soybeans director of policy. “There were several items that we’ve been working on for several sessions, consecutively now in a row.”
It was a busy session with more than 2,400 bills filed between both chambers, according to Jacob Knaebel, Missouri Corn associate director of public policy.
“It was always reassuring to see that there were a couple items that garnered legislators’ attention relating to agriculture when they’ve got so many topics to address every single year,” he says.
Key ag measures move ahead
Here are bills, and budget items, that passed the Legislature and headed to Gov. Mike Kehoe’s desk:
Expanded health plan (Senate Bill 79). Once signed, this bill allows the Missouri Farm Bureau (MOFB) to provide affordable and reliable health coverage for its membership.
“The sad reality is that farming is one of the most hazardous industries to work in,” Knaebel explains, “and health coverage is a major cost for a lot of farmers that can deter some from coming back to the farm.”
Many farmers, small business owners and individuals not covered by group health insurance plans struggle to find affordable options on the marketplace. This legislation enables MOFB to offer health plans to its members that are projected to cost 30% less than comparable unsubsidized plans on the individual health insurance marketplace.
Knaebel adds that the legislation represents a step forward for those who currently see no alternative for health coverage — particularly those who might otherwise choose to remain uninsured in a high-risk industry.
“Missouri Farm Bureau has been trying to get this accomplished for the past three years now,” says Mark Fiegenbaum, MOFB associate director of state and local legislative affairs. “What we’re trying to do is to thread the needle of folks who’ve been lost in the in the cracks in the health coverage perspective.”
Feigenbaum notes the coverage doesn’t cost any money to the state.
Water Preservation Act (Senate Bill 82). This bill makes it against the law for a person to export water resources outside the state, unless the person holds a water exportation permit issued by the Department of Natural Resources.
According to the Missouri Department of Natural Resources, a riparian water rights state means landowners touching or lying above water sources have a right to a reasonable use of those water resources.
“Here in Missouri, it’s essential that we start taking action now that will protect farmers’ access to water resources before any out-of-state interests,” Knaebel says.
Ideally, Travlos says the bill would have put an outright ban on bulk water exportation, but that violates the U.S. Constitution via the dormant commerce clause.
“What this bill does is it puts in place a strict permitting process to protect Missouri’s water, and there’s oversight with the Soil and Water Commission, through the DNR,” he says.
Capital gains tax elimination (House Bill 594). The bill authorizes a 100% deduction of capital gains for state income tax purposes, something Mike Deering, the executive vice president of the Missouri Cattlemen’s Association, calls this session’s “biggest win” for the future of family farms and ranches.
“We often talk about, ‘How do we repopulate the land with new faces?’ How do we get the next generation, back to the family farm?” he asks. “Well, eliminating capital gains taxes, eliminating this tax burden is a huge part of that.”
Plant pest control (Senate Bill 105). This measure calls for all plant nurseries to comply with certain affidavit requirements relating to plant pest infestation.
“Basically, the nursery dealer can’t intentionally sell or distribute seeds, or plant portions of any species included in that bill,” Deering says. “That includes species impacting livestock producers.”
It not only covers species such as Sericea lespedeza, but also perilla mint, which is poisonous and can kill cattle.
Funding wins for agriculture
Aside from these bills that passed the Legislature, there were also some funding programs that were approved during the session:
Soybean Cyst Nematode Diagnostics Laboratory. Missouri soybean farmers can breathe a little sigh of relief as the Legislature passed the 2026 Department of Agriculture budget, including providing funding to further research the soybean cyst nematode (SCN).
In 2024, university agronomists estimated that about 90% of Missouri’s fields were affected by soybean cyst nematode. Travlos says this parasitic worm attacks soybean roots and is the most yield-limiting disease affecting soybeans, reaching $1.2 billion in damages to the state annually.
The Legislature provided a one-time funding of $4 million to renovate MU’s laboratory.
Veterinary support. Deering says the state budget provided $420,000 for a new large-animal veterinary student loan program.
“This is a great program trying to get large-animal veterinarians into underserved areas throughout Missouri,” Deering says.
Wildlife management. The state allotted nearly $2 million for the black vulture mitigation program through the Missouri Department of Agriculture to help livestock producers manage the predatory bird that preys on baby calves and can kill livestock.
University construction projects. Funds were set aside for two construction projects with the University of Missouri. The first one is a meat laboratory processing facility, and the second is a veterinary diagnostic laboratory.
“When you start talking about the likelihood of disease outbreaks — foot-and-mouth disease, New World screwworm, having a good solid diagnostics lab here in the state instead of having to send those to Kansas and elsewhere will be a good use of dollars,” Deering notes.
Initiative setbacks
Although Missouri farmers saw big wins this year, there were some measures that did not make it. Those include:
Beginning farmer program. The Beginning Farmer Tax Deduction Program helps with farm transfers, but currently only benefits sole proprietors, excluding family trusts and multi-member LLCs. A bill to expand eligibility to these farm structures was drafted, but it didn’t pass before the session ended.
Knaebel promises to revive the effort next year, aiming to make more Missouri farmers eligible for the program that incentivizes land transfers to the next generation.
Public Service Commission expansion (Senate Bill 9). This bill would add two more members to ensure agriculture production representation.
Missouri has become the superhighway for transmission lines and other energy needs, according to Deering. He says while farmers and ranchers understand the need for eminent domain at times, they should have a seat at the decision table. This bill tried to expand the Public Service Commission to include farmers and landowners.
Tax credit extensions. The higher ethanol blends retailer tax credit and the new generation cooperative incentive tax credits did not make it through the legislative session, and both programs have a sunset. The goal, Knaebel says, was to either extend or remove the sunset clauses.
“We hope that we can hit the ground running next year and receive some positive attention on those agricultural tax credit programs,” he adds.