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Arkansas Farmers Who Receive Federal Financial Aid Won't Have to Pay Income Taxes

Act 696 of 2025 exempts USDA disaster payments from Arkansas state income tax, aiding producers with $286.2 million projected via the Emergency Commodity Assistance Program.

Summary by KTLO LLC
Arkansas farmers receiving federal financial assistance will be exempt from paying state income taxes in accordance with state law, state officials announced Thursday.”Not only do these exemptions provide immediate relief to our hardworking farmers and ranchers, but they also help bolster Arkansas’ number one industry,” Gov. Sarah Huckabee Sanders said in a news release. Commodity crop farmers are facing one of their worst periods in decades as …

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White River Now - Batesville, AR broke the news in on Thursday, November 20, 2025.
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