American Farm Bureau President Zippy Duval pushed back against the administration’s stance that most small family farmers will escape a proposed capital gains tax to replace the so-called “stepped-up basis.”
Duval disputed the Biden Administration’s claim that a $2 million per couple exclusion on the gain on farm assets and that passed onto children, will let most off the hook on any new capital gains tax.
“Well, the study that came out of Texas A & M said 98 percent of the farmers would be affected, if the stepped-up basis was removed. Even though we appreciate them making an effort to recognize agriculture and the difficulty we’re going to be in, in today’s time and what it costs to be in agriculture, the values of land and equipment across this country, that we have to have to farm, it’s really pennies.”
When a $2 million exemption is compared to farming costs.
“If you’re going to farm corn and soybeans, you can’t make a living off 500-acres. If you’re going to grow cotton in south Georgia, well the cotton picker costs $800,000, you can’t just farm 500-acres. “
USDA Secretary Tom Vilsack says most family farms would be exempted from the proposed new capital gains tax at death that would help fund the Biden American Families social infrastructure plan.
Separately, the Senate Ag Committee late Monday planned to vote to send the nomination of Jennifer Moffit, California’s Ag Undersecretary, to the full Senate to be the next USDA Undersecretary for Marketing and Regulatory Programs.