The American Farm Bureau Federation (AFBF) is calling on Congress to remove barriers to farm ownership. Bills aimed at eliminating the estate tax were introduced in the Senate and House March 9. Both are supported by AFBF.
Sen. John Thune (R-S.D.) and 25 cosponsors introduced S. 617.
Reps. Jason Smith (R-Mo.) and Sanford Bishop (D-Ga.) introduced H.R. 1712 with 121 cosponsors.
Both bills would allow for a complete repeal of the estate tax, which, according to AFBF analysis, threatens more than 74,000 family farms across the country and nearly half of all farmland.
“Farmers and ranchers already face unpredictable challenges beyond our control yet persevere to protect our nation’s supply of food, fiber and renewable fuel. The tax code should encourage farm business growth, not add to uncertainty,” AFBF President Zippy Duvall said. “Eliminating the estate tax removes another barrier to entry for sons and daughters or other beginning farmers to carry-on our agricultural legacy and make farming more accessible to all. We appreciate Sen. Thune and Reps. Smith and Bishop for introducing their bills and look forward to working with them to get this important legislation passed.”
If the estate tax is not eliminated, instead of spending money to improve their operations, farmers and ranchers, along with all small businesses, will be forced to continue to divert resources to pay for estate planning to account for a shifting and unpredictable tax code.
The 2017 Tax Cuts and Jobs Act temporarily doubles the estate tax exemption to $11 million per person indexed for inflation through 2025. However, without congressional action, the estate tax exemption will revert to $5.5 million per person in 2026, putting even more farms and ranches at risk.
The national organization noted serious consideration should be given to eliminating estate taxes or at the very least making permanent the current inflation-adjusted Tax Cuts and Jobs Act estate tax exemption to preserve family farms. By eliminating estate taxes or making the current exemptions permanent, U.S. farmers and ranchers will be able to avoid, at least partially, liquidating inherited farm assets to meet the death tax’s financial obligations, AFBF said.
Read more about the impact of the death tax on American family farms and ranches on Market Intel.
Eliminate death tax or lose Texas
Eliminate death tax, it is not fair to the family of the farmers that have worked so hard to have a farm that they have to pay a DEATH TAX!! It need to be eliminated!
This absolutely needs to be done! My grandparents eventually lost their 30,000 acre ranch because of the inheritance tax they had to pay when my great grandmother passed. This was in the 80’s and they were never able to recover. Breaks my heart every day!