This Colorado proposal would provide targeted tax relief, greater regulatory certainty, and voluntary incentives through existing channels and partnerships, without adding new layers of government.
Sept. 14, 2026
Denver, Colorado
“Colorado’s farmers and ranchers do not need Washington telling them how to run their operations. What they truly need is for Washington to stop making it more expensive to do so,” noted Senator Mark Baisley.
The Farm Prosperity and Cost Relief Act is built around a simple principle: that the government should remove barriers to prosperity without adding complexity.
Farmers and ranchers are facing extraordinary pressure from the rising costs of fuel, fertilizer, seed, equipment, interest, and excessive regulations. This proposal takes a proactive approach to those challenges by using the tax system and voluntary incentives to help producers keep more of what they earn and reinvest it back into their operations.
“America cannot have food security without farm security,” Baisley said. “Our farmers and ranchers know how to produce. The problem is that producing has become increasingly expensive and overregulated. When the price of fertilizer, diesel, seed, equipment, credit, and regulation are all climbing at once, eventually something has to give.”
According to the policy proposal, 2026 production costs are approximately $936 per acre for corn, $684 for soybeans, and $419 for wheat. Farm-sector debt is projected to reach approximately $624.7 billion in 2026, with interest expenses approaching $33 billion.
EQUIPMENT
The proposal would establish clearer tax rules for qualifying true operating leases for farm equipment. Meaning that this allows qualifying lease payments to be treated as ordinary business expenses in the year paid, while distinguishing genuine leases from financing arrangements.
Senator Baisley’s focal point on this matter is simple: a farmer should not have to tie up enormous amounts of working capital simply to obtain the equipment necessary to produce.
“We’re giving farmers another tool—not telling them which tool they have to use,” Baisley said. “Equipment decisions should be based on what makes sense for the operation, not what makes sense for an IRS auditor.”
INPUT-COST RELIEF
The proposal also contemplates targeted tax relief for qualified production inputs, including factors such as fertilizer, fuel and oil, agricultural chemicals, and seed.
The proposal would allow producers to deduct a defined percentage of qualified production input costs, with potential caps and phase-outs designed to shift the focus toward benefits for family and mid-sized operations.
“You cannot control the weather, commodity markets, or global fertilizer prices. But Washington can control how much of your money Washington takes,” Baisley said.
The goal is straightforward: when farmers are paying the expenses necessary to put food on America’s tables, government should not pile unnecessary costs on top.
VOLUNTARY STEWARDSHIP
The third component aims to build on Colorado’s Agricultural Stewardship Tax Credit by creating a national model that rewards voluntary practices designed to improve soil health, conserve water, strengthen grazing and irrigation management, and improve long-term agricultural resilience.
“Conservation works best when the government becomes a partner instead of a dictator,” Baisley said. “Nobody understands stewardship better than the farmer or rancher whose livelihood depends on that land.”
The proposal would establish a system to reward producers who voluntarily choose practices that make sense for their land and operations. Participation would be voluntary, and individual farmers would remain in charge of their own agricultural choices.
“Farmers don’t need Washington to teach them to care about their land. Their land is their livelihood and, for many families, their legacy,” Baisley said.
The Farm Prosperity and Cost Relief Act is intended to give producers greater flexibility and more control over their own operations while reducing unnecessary costs and regulatory uncertainty.
“Instead of waiting until agricultural crises occur and then writing an emergency check, we should pursue proactive policies that help producers remain profitable in the first place,” Baisley said. “The best agricultural safety net is a profitable farm.”
Colorado agriculture is deeply connected to the state’s rural communities, family farms and ranches, water resources, economy, and way of life. Baisley said federal agriculture policy should recognize those contributions by giving producers more freedom to make decisions for their own operations.
“The family farm should be something you inherit—not something you inherit debt from,” Baisley said.
The Farm Prosperity and Cost Relief Act seeks to lower the cost of doing business, preserve family farms and ranches, strengthen rural America, and ensure the next generation has an opportunity to continue feeding the country.
“The best agricultural policy isn’t one that makes farmers more dependent on the government. It’s one that makes them more independent from it,” Baisley said.
About the Farm Prosperity and Cost Relief Act
The Farm Prosperity and Cost Relief Act proposes targeted, market-based reforms focused on reducing the federal tax and regulatory burden on agricultural producers. The proposal emphasizes limited government, fiscal discipline, and local control, and invites voluntary incentives while providing producers with greater flexibility and immediate cost relief.
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Baisley for Senate
720-645-9105
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