Hundreds of agricultural groups have voiced concern regarding the tax proposals being considered and how they will impact the industry. Letters were sent to congressional leaders detailing the crucial tax policies that farmers and ranchers have come to rely on. A group of more than 300 ag organizations has highlighted four key tax provisions that will be critical for the future of the industry in a recent letter. The letter emphasizes the importance of estate taxes, stepped-up basis, the 199A small business deduction, and like-kind exchanges.
“The policies Congress enacts now will determine agricultural producers’ ability to secure affordable land to start or expand their operations,” the letter states. “Regardless of whether a business has already been passed down through multiple generations or is just starting out, the key to their longevity is a continued ability to transition when a family member or business partner dies. For this reason, we firmly believe the current federal estate tax code provisions must be maintained.”
The letter was signed by 46 state Farm Bureaus, as well as hundreds of state and national ag organizations. Congressional leaders Ron Wyden, Mike Crapo, Richard Neal, and Kevin Brady were all encouraged to preserve the critical federal tax provisions that farmers and ranchers use to ensure the future of the industry. The National Farmers Union also sent a similar letter to House and Senate leadership, emphasizing the importance of agricultural needs when considering future tax policy.
“Burdensome new tax liabilities may lead to the premature sale of family farms and ranches and contribute to a worrying trend toward greater farmland consolidation and corporate control of our food system,” NFU President Rob Larew said in the letter. “NFU opposes elimination of the ‘stepped-up basis’ at death on the appreciation of assets, such as land, that family farmers and ranchers rely on to produce the food, feed, fiber, and fuel all Americans depend on.”