Ranchers educate Capitol Hill on devastating estate tax effects

Representatives from the National Cattlemen’s Beef Association (NCBA) gave an overview to congressional staff members on the devastating impact of the estate tax on cattlemen and cattlewomen as part of NCBA’s “Beef 101” educational series. According to Bacus, 97 percent of American farms and ranches are owned and operated by families, and eliminating the death tax is an important step in stimulating the nation’s economy. One important fact addressed during today’s presentation is that most agricultural operations are asset-rich and cash poor, with most of their value tied up in the value of the land. For asset-rich and cash-poor family businesses, the appraised value of rural land is extremely inflated when compared to its agricultural value. NCBA has made this information available on its website including state-by-state analysis. “Uncertainty in the tax code, and more specifically with the estate tax, creates an unnecessary burden for farmers and ranchers who are forced to set aside valuable resources for estate planning instead of investing in the expansion of their family businesses,” said Bacus. “Farmers and ranchers are already faced with uncontrollable factors like the weather and input costs. The tax code shouldn’t be as unpredictable as the weather.”...more