Taxes are always top of mind for farmers, and the American Farm Bureau Federation (AFBF) is looking for changes to keep tax policies as friendly to farmers as possible.
The Taxpayer Certainty and Disaster Tax Relief Act of 2019 would bring an early end to important but temporary estate tax exemptions, and that’s not good news for American farmers, according to AFBF Senior Director of Congressional Relations Pat Wolff.
“Legislation that’s moving through the House would roll that higher exemption back three years early. That’s bad news for farmers and ranchers,” Wolff said. “First of all, more farms will be over the exemption and have to pay the estate tax, and more and more farms will have to spend money on estate tax planning because they don’t know what the exemption’s going to be and when it’s going to change.”
Farm Bureau also wants reinstatement of an expired renewable energy tax credit that once supported biodiesel production. Wolff said the credit is important for America’s soybean farmers.
“The fact that Congress has let the biodiesel tax credit expire, it’s been gone for over a year now, is really hurting the biodiesel industry,” Wolff said in an interview with AFBF’s Newsline. “Farmers need markets for their products, and biodiesel can provide that. And Congress needs to get on the move and reinstate tax incentives for biodiesel production.”
Wolff noted farmers and ranchers need short line railroads to get their products to market and the supplies they need. Farm Bureau supports tax incentives for the railways.
“The short line rail line credit was a credit to short line railroads so that they could maintain their tracks,” Wolff said. “If the tracks fall apart, the trains can’t run, and farmers lose their access to market.”