Agricultural taxation and policy constantly change to meet societal demands, economic developments, and industry shifts.
Hence, several new advancements are anticipated in this field in 2023, which will significantly impact farmers, agribusinesses, and rural communities.
The following ten changes to agricultural taxation and law are expected to be in action throughout 2023 until the need for further adjustment or replacement emerges.
So, grab your coffee, and let’s explore them.
- Tax Incentives for Climate-Smart Agriculture
Policymakers are beginning to understand the significance of encouraging environmentally conscious farming methods as humanity struggles with climate change.
More tax breaks might be available to farmers in 2023 who use sustainable farming techniques like precision farming, reduced tillage, and cover crops. Global soy supply chain utilize some of these methods to improve farming operations’ productivity and efficiency while lowering greenhouse gas emissions and mitigating the effects of global warming.
So, the goal is to spread it further.
- Added Resources for Agricultural Research
The agricultural sector continually changes, and new methods and technology are continuously being developed. Governments and corporate organizations will probably increase financing for agricultural research in 2023 to keep up with these changes.
Farmers will benefit from the newest advancements, as a result, increasing their production and effectiveness. For example, studies on innovative crop types and technological advances in agriculture can aid farmers in better coping with the hazards related to pests and diseases as well as unpredictable weather conditions, especially droughts and floods.
- Strict Pesticide Policies
You might wonder why strict regulation is needed, but pesticides are necessary to keep crops healthy and stop pest infestations.
Nonetheless, most of these chemicals can hurt the environment and people. As a result, pesticide use will likely be subject to more stringent regulations starting in 2023, which will encourage environmentally conscious and safer farming techniques.
Understand that some harmful chemicals may be prohibited, pesticide use may be reduced, and integrated pest management practices that depend upon organic pest control techniques may be encouraged.
- Enhanced Farm Worker Security
Although they are essential to the agriculture sector, farm workers frequently face unfavorable working conditions and low wages. You can anticipate more significant safety measures for farm workers in 2023, including higher starting salaries, greater access to healthcare, and better working conditions.
These measures help draw in and retain competent and inspired personnel, resulting in healthier and more efficient agricultural operations. They also guarantee the health and welfare of farm workers.
- Agriculture’s Digital Transformation
While the farming sector gets further computerized, farmers are using technology to improve operational processes and maximize output.
In 2023, you can expect this industry to advance even further, with applications including crop management, supply chain tracking, and logistics optimization employing drones, machine learning, and blockchain technology.
These tools enable farmers to track and regulate their crops more efficiently, increasing yields and improving resource utilization.
- Agricultural Biotechnology Policies
Since biotechnology has an opportunity to reshape the agriculture industry, keen ethical and security concerns still exist.
New legislation on agricultural biotechnology, particularly gene editing and genetically modified organisms (GMOs), is expected to be enacted in 2023 to ensure safety and mitigate any prospective negative environmental impacts.
To guarantee that biotechnology is utilized ethically and environmentally friendly, these policies are expected to strongly emphasize openness, evaluation of risks, and public involvement.
- An increase in Organic Farming
Because consumers are becoming more mindful of their food’s nutritional value and well-being, organic farming is growing in popularity.
Don’t be surprised when you witness increased organic agriculture in 2023, as more farmers embrace organic methods and consumers want organic goods.
Such development can assist farmers in diversifying their sources of income, lowering their dependency on artificial inputs, and enhancing soil quality and biodiversity.
- Carbon Incentives for Agriculture
Over the years, policymakers have and are still figuring out practical solutions worth minimizing greenhouse gas emissions, and one of those approaches is utilizing carbon credits.
By reducing their carbon footprint, organizations can receive credits under this scheme, which they can later sell to other enterprises to compensate for their emissions.
Expect this move in 2023. It involves receiving a credit that you can later resell to other organizations using approaches that reduce greenhouse gas emissions while trapping carbon in the soil.
Eventually, farmers will be motivated to embrace sustainable habits and manage how their activities affect climate change.
- 9. Agriculture Subsidies Adjustments
Many people contend that large agribusinesses wrongfully benefit from agricultural subsidies, which they claim distorts the market.
We can anticipate adjustments to agricultural subsidies in 2023, focusing on helping small-scale farmers and advancing sustainable farming methods. Governments may also roll out brand-new subsidy schemes to encourage farmers to use climate-smart techniques or promote the production of organic or regional foods.
- 10. Greater Attention Paid to Food Security
The COVID-19 epidemic has elevated food security to the top of the list of world issues. Food shortages and price increases result from supply chain interruptions, border closures, and export limitations, especially in vulnerable parts of the world.
Everybody should expect and embrace a greater emphasis on food security in 2023 as countries and communities try to expand food access and fortify regional food systems.
Final Thoughts
As you have seen from the sections explored above, change is inevitable, and the agricultural sector is no exception.
The changing needs of society, the economy, and industry advancements must be considered. Farmers, agribusinesses, and farming communities internationally will be subject to adjustments anticipated in 2023.
The end goal is to promote small-scale farmers and develop local food systems. So, don’t feel left behind and surprised when you see some of these policies unfolding before you.
