WASHINGTON — The heat is on.
Earlier this week, more than 300 organizations representing farmers, ranchers, and agribusiness penned a letter to Congressional leaders regarding the future of tax policies as they find revenue to fund the Administration’s human infrastructure bill.
Specifically, the letter addresses four key tax provisions that allow agricultural operations to continue the process of transitioning from one generation to the next.
Estate taxes, stepped-up basis, 199A small business deductions, and like-kind exchanges.
The letter reminds members that “the policies Congress enacts now will determine agricultural producers’ ability to secure affordable land to start or expand their operations. 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.”
The American Farm Bureau Federation (AFBF) also reminds legislators that these tools are as crucial as ever as the number of farmers and ranchers 65 and older outnumber those 35 and under by a four-to-one margin and more than 370 million acres are expected to change hands in the next two decades.
(SOURCE: All Ag News)
