| - The
House and Senate introduced respectively a bill for the purpose of providing a
capital gains tax incentive to agricultural producers on the sale of their farm
or ranch land.
- Please
contact your U.S. Representative to urge them to co-sponsor H.R.
2978!
- Please
contact your U.S. Senators to urge them to co-sponsor S.
1464!
H.R.
2978 and S. 1464 would provide new capital gains tax relief for the sale of all
qualified farm or ranch property. However, greater benefits would be provided
to agricultural producers selling their land to first-time farmers and ranchers,
and to other buyers who keep the land in agricultural production. Click
here to review the text of H.R. 2978. Click
here to review the text of S. 1464. According
to Rep. Lee Terry, who introduced H.R. 2978, the goal of the legislation is to
level the playing field for younger producers, while lifting the tax burden for
those selling their land. He said the rising age of the American farmer and rancher
is a reason for concern. Nationally, the average farmer age is about 57, according
to the U.S. Department of Agriculture. Also, USDA statistics show that the amount
of U.S. farmland has decreased by about 100 million acres from 1980 to today.
For ranchers, rangeland decreased nearly 20 million acres from1982 to 1997. H.R.
2978/S. 1464 would provide 3 tiers of tax relief in the sale of farm and ranch
land: Tier
One: Producers selling their land to a beginning farmer or rancher
would receive a 100%
reduction of their capital gains tax rate. Tier
Two: Producers selling their land to someone who pledges to keep the
land in agricultural production
would receive a 50% reduction of their capital gains taxes. Tier
Three: Active or recently retired ag producers selling their land to
anyone, for any purpose, would
receive an automatic 25% reduction of their capital gains taxes. National
Grange's policy on the tax incentive for farmers is as follows:
- National Grange calls
upon the President and Congress to support programs and policies that will help
sustain and enhance family farms - by increasing the net farm income, providing
economic and tax incentives, and credit and/or tax credits for soil and water
conservation - without escalating the advantages to non-farm investors.
-
Federal, state, and local agencies should work for efficient economic development
policies that treat the agriculture industry on equal terms with other businesses
and industries such as small business loans, tax incentives, marketing practices,
and other programs that would help small farmers.
Click
here to read the letter sent to Rep. Lee Terry by National Grange Action
Plan --- Please contact your U.S. Representative immediately to urge them
to co-sponsor H.R. 2978! Please contact your U.S. Senators immediately
to urge them to co-sponsor S. 1464!
Contact information for
U.S. House Representative
Contact
information for U.S. Senators
| Sample
Letter for your U.S. Representative: |
| Dear
Congressman ___________: I'm
writing to you to urge you to vote for H.R. 2978, the Beginning Farmers and Ranchers
Tax Incentive Act of 2003. This legislation would provide a capital gains tax
incentive to agricultural producers on the sale of their farm or ranch land. It
would especially grant greater benefits to agricultural producers selling their
land to first-time farmers and ranchers, and to other buyers who keep the land
in agricultural production. While the average farmer age is rising and the amount
of U.S. farmland is decreasing, this legislation can play an important part in
securing a strong U.S. farm sector. Please co-sponsor H.R. 2978! Thank
you for your support for our nation's young farmers. Sincerely,(Name)__________________________ (Grange/Grange
name and number) __________________________ | Sample
Letter for your U.S. Senators: |
| Dear
Senator___________: I'm
writing to you to urge you to vote for S. 1464, the Beginning Farmers and Ranchers
Tax Incentive Act of 2003. This legislation would provide a capital gains tax
incentive to agricultural producers on the sale of their farm or ranch land. It
would especially grant greater benefits to agricultural producers selling their
land to first-time farmers and ranchers, and to other buyers who keep the land
in agricultural production. While the average farmer age is rising and the amount
of U.S. farmland is decreasing, this legislation can play an important part in
securing a strong U.S. farm sector. Please co-sponsor S. 1464! Thank
you for your support for our nation's young farmers. Sincerely,(Name)__________________________ (Grange/Grange
name and number) __________________________ | |
If you have any
questions or comments please contact Legislative Research Analyst Chil-Sook
Hwang by fax: 202-347-1091 or by phone: 1-888-4GRANGE, ext 109. Thank you
for your grassroots participation in the National Grange Legislative program.
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