As we turn toward 2026, AEM is gearing up for a robust slate of state level advocacy across the U.S. Our members’ interests are shaped by a wide array of emerging state issues, ranging from autonomous equipment standards to producer funding programs and environmental mandates.
Autonomous Equipment Standards
In California, the work continues with the California Division of Occupational Safety and Health (Cal/OSHA) Advisory Committee on autonomous agricultural tractors. AEM remains actively engaged in this body to ensure that standards under development reflect the complexities of ag equipment operations. In 2026, our objective is clear: ensure that safety requirements are realistic, promote innovation, and allow manufacturers and producers to deploy autonomous equipment responsibly and safely.
Farm Equipment Modernization and Producer Incentives
In California, the FARMER Program continues to support modernization of agricultural equipment through grant funding. However, efforts to reauthorize funds for the program were not a priority of the California legislature in 2025. Our advocacy will emphasize maintaining and expanding eligibility for emerging technologies, ensuring that funding levels keep pace with actual equipment costs, and position the program as a core tool for ag competitiveness under evolving climate and emissions policies.
In Wisconsin, AEM will continue to support dairy-innovation legislation that supports the adoption of advanced modern dairy equipment by small to mid-sized dairy farms. Modern dairy equipment provides these farmers with significant labor, environmental, and economic benefits that can help them compete with larger operations.
Meanwhile, in New York, signage and safety standards for farm equipment on public roads will be receiving renewed focus. AEM will work to ensure that necessary updates reflect existing industry best practices and preserve innovative safety systems. This will enhance clarity for operators and motorists, support consistent national safety standards, and simplify compliance for equipment manufacturers and farmers.
Tax Incentives
As states introduce new tax proposals, AEM will work to ensure these proposals keep manufacturing in mind and promote investment, competitiveness, and job creation. AEM will continue its work in Wisconsin, where legislators are considering extending the carryover period for unused research credits. The R&D tax credit remains a valuable tool for manufacturers to continue improving efficiency, safety, sustainability, and innovation in equipment.
PFAS and EPR: Environmental Policy Pressure Points
Beyond agriculture, two major policy trends are front and center. First, restrictions on per‐ and polyfluoroalkyl substances (PFAS) at the state level are proliferating. It is expected in 2026 to see increased legislation covering reporting, disclosure, and outright prohibitions of PFAS‐containing components. AEM will work with states to communicate manufacturing realities, promote harmonized definitions, and encourage transition timelines that support innovation and supply-chain readiness.
Second, Extended Producer Responsibility (EPR) programs are gaining traction across states, especially for packaging, electronics, and durable goods. AEM’s focus is to ensure that EPR frameworks do not inadvertently burden equipment manufacturers or complex machinery, include appropriate exemptions or carve-outs, and reflect the distinction between consumer products and equipment manufacturing.
The Road Ahead
As the political landscape shifts heading into the 2026 elections and regulatory agendas continue to evolve, staying ahead of policy developments is critical. AEM’s state advocacy strategy remains rooted in early engagement and building strong relationships with policymakers and regulators to promote pro-manufacturing policies.
