Barometer: 95% of farmers surveyed concerned tax policy will make it harder to transition farms
Farmers are worried about potential changes in estate tax policy, according to the latest Purdue University/CME Group Ag Economy Barometer.
Purdue’s Jim Mintert says 95 percent of farmers surveyed are somewhat or very concerned that tax policy changes will make it more difficult to pass their farms on to the next generation.
“The estate tax implications for agriculture are huge,” he says. “Agriculture is an industry that’s characterized by large capital investments, which makes it prone to being subject to taxation with a change in policy and those changes could have a big impact on people’s ability to pass a viable farming operation on to the next generation.”
He tells Brownfield they asked a series of questions to learn more about famers’ perspective on tax policy.
“Eighty seven percent of producers in our survey said that they expect capital gains tax rates to rise over the next five years, three-fourths of the producers said they are very concerned about a possible loss of step-up in cost basis for farmland in inherited estates, and 68 percent are very concerned about a possible reduction in estate tax exemption for inherited estates,” he says.
Mintert says the barometer will continue to gauge farmer sentiment on tax policy, especially as more details are released.
“The details matter and as this discussion evolves, we’ll continue to ask questions,” he says.
The Ag Economy Barometer is a national monthly survey of 400 U.S. agricultural producers.