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Giving young farmers a tax break

Giving young farmers a tax break

The Student Agriculture Protection Act would create a tax exemption for the first US$5,000 a young producer earns

By Diego Flammini
Staff Writer
Farms.com

A U.S. Congressman wants to make it easier for young farmers to get their businesses off the ground.

Texas Republican Michael McCaul introduced the Student Agriculture Protection Act on March 14, which coincided with National Agriculture Day. The bill has received co-sponsorship from 135 other House Representatives.

If passed, the bill would amend the Internal Revenue Code of 1986 to create a tax exemption for the first US$5,000 of project revenue for American farmers 19-years-old or younger. The eligible farmers must be involved in Future Farmers of America (FFA), 4-H or a program under “the direction or guidance of an agricultural educator, advisor or club leader.”

The average age of an American farmer is 58, the U.S. Labor Department says.

One of the keys to a healthy ag industry is ensuring tomorrow’s farmers are in a good place financially, McCaul said.

“This bill eliminates needless barriers for our student farmers and allows them to save for future endeavors such as their college education,” he said in a statement. “Our future is dependent upon a robust, diverse American agriculture sector. The Student Agriculture Protection Act will both inspire and incentivize student farmers to join the legacy of patriotic farmers in Texas.”

Ag organizations welcome the introduction of Rep. McCaul’s bill.


Kurt Dillon/FFA photo

“This sounds like a pretty good deal,” Kurt Dillon, FFA’s central region state supervisor, told Farms.com. “Anything that a government can do to help young people who are interested in a career in agriculture would be seen as a positive in my view.”

Top photo: Michael McCaul


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