The American Farm Bureau Federation, along with 46 state Farm Bureaus and 280 organizations representing family-owned agribusinesses, sent a letter in September to congressional leaders urging them to leave important tax policies in place as they draft legislation implementing President Biden’s “Build Back Better” agenda. The letter addresses four key tax provisions that make it possible for farmers and ranchers to survive and pass their businesses on to the next generation: estate taxes, stepped-up basis, 199A small business deduction and like-kind exchanges.
“The policies Congress enacts now will determine agricultural producers’ ability to secure affordable land to start or expand their operations,” the letter states. “Regardless of whether a business has already been passed down through multiple generations or is just starting out, the key to their longevity is a continued ability to transition when a family member or business partner dies. For this reason, we firmly believe the current federal estate tax code provisions must be maintained.”… Continue reading