CONGRESS GOES HOME, BRINGS BENEFITS TO CATTLE PRODUCERS

WASHINGTON, D.C., Nov. 14, 1997 -- Members of the U.S. House and Senate wrapped up the first session of the 105th Congress and went home today, after having approved a number of key measures that will improve the business environment for beef producers, according to the National Cattlemen's Beef Association.

"Cattle producers gained momentum on some critical issues, like estate tax reform, property rights protection and grazing regulation relief," said Chandler Keys, NCBA vice president, Center for Public Policy. "Progress was made in other areas as well, such as shoring up broad support for fast- track legislation, that will keep these issues at the forefront when Congress reconvenes in late January."

Victories for producers in the first session of the 105th Congress include:

• Estate tax. One of the biggest legislative wins in 1997, the Tax Relief Act is the first major tax reform since 1981. The law makes it easier for cattle producers to keep farms and ranches in the family when death taxes come due by adding a new tax exclusion for family-owned businesses. When combined with the unified credit exemption, the total exclusion is $1.3 million per entity. On a $3 million estate, producers would save $358,738.

• Capital gains. The new tax law cuts capital gains rates. It drops the top rate to 20 percent and the bottom rate to 10 percent for investments held at least 18 months. A producer selling 20 bred heifers at $900/head would save $45 to $72 per head in capital gains tax.

• Income averaging. The tax law reinstates income averaging in 1998, 1999 and 2000 for the tax year 2001.

• Health care. The tax law increases health-care deductible for the self-employed to 100 percent by the year 2007.

• Disaster relief. The tax law would allow producers to defer capital gains on livestock sold due to adverse weather conditions including drought, floods and snow. Another new law provided disaster assistance to those hard hit by last winter's storms.

• Property rights. The House approved a bill that would protect the constitutional rights of private property owners. The bill would expedite the process for property owners to take Fifth Amendment takings claims to federal courts.

• Grazing. The House approved the Forage Improvement Act of 1997, a bill that would increase cattle industry stability be allowing federal-lands ranchers to plan for forage use. Passage of the bill marks the first time the House has approved grazing legislation since 1978.

Initiated in 1898, the National Cattlemen's Beef Association is the marketing organization and trade association for America's one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington, D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation's food and fiber industry.