Tax uncertainties hinder a variety of farm transition situations
Uncertainty surrounding tax policy is creating challenges in farm transitions both in and outside of the family.
Although the next generation of his family is not interested in the farm 77-year old Trevor Toland of Macomb, Illinois wants to pass it down to 23 year old cattleman who he shares a grazing lease with.
“Oh my gosh, it is complicated. We have actually done a little work on it this summer and taxes are a huge issue for us. Capital gains tax would just slay us. If we went another way, like a rent to own, we would have a huge income tax. So, difficult decisions ahead.”
And he says that makes it difficult for young farmers too. “He can’t generate enough income to make the payments he would need to make, so he has to be backed by a larger operation which makes it even harder for him too.”
Brownfield interviewed Toland at the Heart of America Grazing Conference in Mt. Vernon, Illinois.