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Tax policy remains a top priority for cattlemen
The National Cattlemen’s Beef Association says tax policy will be their top issue when Congress returns from its August recess. Ethan Lane, vice president of government affairs says they’ll be busy lobbying members of Congress to ensure there are no significant changes to tax policy. “Land values in ag country aren’t $3,000 an acre anymore and haven’t been for a while,” he says.
He tells Brownfield NCBA wants protections in place to allow producers to pass their farms to the next generation. “We’ve got to preserve stepped-up basis, we’ve got to preserve an estate tax exemption that’s high enough to really county,” he says. “And we’ve got to make sure things like 1031 exchanges and ag valuations are available to make sure producers can stay viable.”
Stepped-up basis allows adjustments to the value of inherited assets when they’re passed on after death, which would reduce the capital gains tax owed by the recipient.1031 exchanges allow producers to defer paying capital gains tax when the money from selling land is used to buy replacement land.
The US House is scheduled to return from its shortened August recess next week.
Lane made his remarks during an interview with Brownfield at the recent Cattle Industry Convention in Nashville.
AUDIO: Ethan Lane, NCBA
