Expiring Tax Benefits Threaten U.S. Agricultural Stability
As spring approaches, the focus in the agricultural sector extends beyond planting to the pressing issue of expiring tax provisions that support farm and ranch families.
The Tax Cuts and Jobs Act of 2017 provided significant tax relief, but several of these key provisions are due to expire, raising concerns about the future financial stability of the farming industry.
Key tax provisions like the 20% business income deduction and unlimited bonus depreciation are crucial for farmers dealing with the challenges of low commodity prices and rising costs.
The potential expiration of these provisions could lead to an increase in tax liabilities for farm households by $4.5 billion, a daunting figure that underscores the need for immediate legislative action.
"Farm and ranch families want to plan not only for the next season but also for the next generation," a quote that highlights the long-term perspective necessary for farm sustainability.
This perspective is crucial as the agricultural community looks towards nurturing the next generation of farmers, particularly when faced with the prospect of increased financial burdens.
The Farm Bureau is actively working to ensure that Congress makes the renewal of these tax provisions a priority. Their efforts emphasize the necessity of a tax code that supports the economic sustainability of farm businesses across seasons and generations.
As the average age of the American farmer approaches retirement, the importance of securing a stable tax policy to support young and upcoming farmers becomes even more critical.
The agricultural sector's stability hinges on the renewal of these tax provisions, which are fundamental to maintaining the economic viability of farming in America.