Harris vs. Trump: What a new administration means for irrigation

As the 2024 election draws nearer, the potential policies of a former President Donald Trump or Vice President Kamala Harris administration present two starkly different paths for the irrigation industry. Both candidates bring distinct approaches to agriculture policy, conservation, taxes, trade and regulation — areas that significantly impact our sector.

Taxation and corporate incentives

Under a Trump administration, we can expect a continuation of the tax cuts introduced in the 2017 Tax Cuts and Jobs Act, including maintaining lower corporate tax rates. Trump’s proposal to reduce the corporate tax rate further from 21% to 15% would directly affect manufacturers and businesses within the irrigation industry, potentially allowing for more capital investment and operational flexibility. However, this also comes with the potential for increased federal deficits, which could impact long-term economic conditions.

Either outcome presents some challenges — and opportunities — for the industry.

In contrast, Harris has advocated for raising the corporate tax rate to 28%, focusing on generating revenue to fund infrastructure and social programs. For businesses in the irrigation sector, this could mean higher tax obligations, but it may also open up opportunities for additional investment in sustainable agriculture programs and water management infrastructure, aligning with broader climate initiatives. As tax policies evolve, our industry will need to remain adaptable and advocate for provisions that support innovation and sustainable practices.

Trade and tariffs: A diverging path

On trade, the candidates present two very different strategies. Trump has hinted at a return to aggressive tariff policies, including imposing a universal baseline tariff on all imports and significantly increasing tariffs on goods from China. This could ignite trade wars that impact export opportunities that underpin the agricultural economy, while disrupting supply chains and possibly raising the cost of raw materials and manufactured products that our industry relies on. Additionally, irrigation manufacturers may face higher input costs, especially for parts and equipment sourced internationally.

Harris, while not proposing new sweeping tariffs, plans to maintain many of the existing ones from the Biden administration, such as tariffs on steel, aluminum and green energy products from China and Mexico. While it may provide more stability for businesses in our space, the continuation of tariffs will still adversely impact businesses in our industry.

Regulatory landscape: Business-friendly vs. environmentally focused

Under Trump, we might see a rollback of environmental regulations, particularly in areas like water quality and emissions. This could reduce compliance costs for many irrigation businesses but may also lead to fewer incentives for sustainable practices. Additionally, Trump’s stance on guest worker programs, such as the H-2A visa program, might make it more challenging for agricultural operations to find and retain seasonal workers.

A Harris administration, on the other hand, is likely to double down on environmental and labor regulations and push more aggressively for federal infrastructure investments, especially those that have benefits associated with conservation and climate change-mitigation. For irrigation businesses, this could mean navigating new compliance measures but also tapping into increased federal investments in water infrastructure and for water-efficient technologies.

What’s next for the industry?

Regardless of the election outcome, our industry must be prepared for significant policy shifts in 2025. Either outcome presents some challenges — and opportunities — for the industry. The Irrigation Association will continue to advocate for policies that promote smart water use, infrastructure improvements, innovation and a balanced regulatory environment. We encourage all our members to stay engaged and participate in our upcoming fly-in next March, where we’ll bring our concerns and solutions directly to Washington.

Nathan Bowen is the vice president of advocacy and public affairs for the Irrigation Association.