Rancher HELP Act Gives Tax Break to Drought-Inflicted Producers

The National Cattlemen’s Beef Association (NCBA) is supporting the “Rancher HELP (Help Extend Livestock Proceeds) Act of 2003” (H.R. 478), which would defer capitol gains taxes for cattle producers forced to sell livestock due to drought.  The legislation was introduced by Rep. Scott McInnis (R-CO).

The McInnis measure was attached as an amendment to the “Armed Services Tax Fairness Act of 2003” (H.R. 878) and favorably passed through the House Ways and Means Committee late last week.

“Producers thank Congressman McInnis and other members of Congress who clearly recognize the difficult situation ranchers are facing with little relief from the ongoing drought,” says Eric Davis, Idaho cattle producer and NCBA president.  “NCBA will continue to support this measure and other initiatives to provide much-needed assistance to our nation’s ranchers.”

Under current tax laws, ranchers forced to reduce their herds due to historically-dry grazing lands are exempt from paying capital gains tax if they replace their herds within two years.  “But the reality is that this drought has lasted for years with no relief in site,” explains Davis. 

NCBA’s Executive Director of Legislative Affairs Jay Truitt says the Rancher HELP Act will extend the time period up to four years before producers must replace their herds or be subject to capital gains. 

“This legislation demonstrates that members of Congress understand the severity of this drought and its impact on ranchers,” says Davis.  “In addition, Senator Craig Thomas (R-WY) has introduced similar language in the Senate, and we are committed to working with both houses of Congress to pass this legislation.”

NCBA members and beef producers can help in this effort by contacting their Member of Congress and urge their support of H.R. 478 or S. 252.