TWO PACKAGES FROM CONGRESS BRING DISASTER AND TAX RELIEF TO FARMERS AND RANCHERS

WASHINGTON, D.C. (September 18, 1998) – The Republican congressional leadership announced yesterday that farmers and ranchers can expect to receive $3.9 billion in disaster relief in the coming months. Included in the package is funding to address crop disaster losses, including $75 million allocated for livestock feed assistance. In addition, the House Ways & Means Committee adopted several agricultural tax provisions in a comprehensive tax bill approved yesterday. The bill includes significant tax relief, which will speed up existing benefits to farmers as well as add new benefits.

"Congress is feeling our members’ pain, and this additional funding will be used by men and women around the nation to keep their farms in business. For thousands of our members, this economic assistance comes none too soon," said Chandler Keys, vice president of NCBA public policy.

Between the two packages there are several provisions that have significant meaning for beef producers, including $75 million of livestock feed assistance that will provide cost share assistance to livestock producers who were forced to purchase feed due to disaster, and significant tax relief in the form of permanent income averaging of farm income. This provision is estimated to provide total savings of $50 million per year for U.S. agricultural producers. The Ways & Means package also contains a provision that would accelerate death tax relief immediately to 100% of the $1 million death tax credit, which is estimated to save U.S. producers $150 million per year.

According to Chandler Keys, this is a solid victory for farmers and ranchers. "We’re constantly on Congress to provide our members with relief from oppressive tax laws. This is great progress."

The aid package also contains a provision to expedite expanded health insurance deduction for the self-employed to make 100% deductibility effective immediately for America’s farmers and ranchers (average savings: $382 per person), an immediate $25,000 per small business expensing deduction (average savings: $1700 per family farm), and an increase in the net operating loss carry back period for farmers that would benefit 100,000 family farmers.

-- NCBA --

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.