Tax & Credit
Most farmers and ranchers are asset-rich and cash-poor, with most of their wealth tied up in the ever-increasing value of the land they use to grow food and fiber for consumers around the world. Unfortunately, for many of these asset-rich and cash-poor family businesses the appraised value of rural land is inflated when compared to its agricultural value. Furthermore, many of these family-owned businesses face an unpredictable tax code that encourages the breakup of multi-generational farm and ranch operations. NCBA strongly supports establishing a tax code that provides certainty and encourages the long-term sustainable growth of agriculture.
NCBA calls on Congress to enact true estate tax reform. Until full repeal of the death tax is achieved, NCBA supports a dual-track policy to:
- Increase the exemption level and decrease the rate of taxation; and
- Provide an overall exemption for agriculture
Estate Planning and the Death Tax
In rural America, the death tax is considered one of the leading causes of the breakup of multi-generation family farms and ranches. In most cases, these assets have already faced taxes two and three times over the course of a lifetime.
Tax Relief for Cattlemen
In addition to death tax relief and increasing income tax and capital gains rates, the American Taxpayer Relief Act (ATRA) passed at the end of 2012 also included key provisions that are important to ranching families.
Tax Options for Drought Sales of Livestock
If a producer is forced to sell livestock, in excess of normal levels, due to shortages of water, feed or other consequences of drought, the income tax on the gain from the sale of those animals may be postponed.