Stallman, continued
Crop insurance will survive the first year, but will likely face cuts in year two.
While all Americans will feel the impact, the cuts will slice right through rural America, which is so dependent on Extension services and rural development.
With Boughs of Folly
The fiscal cliff will also impact tax breaks. An important one for farmers is the estate tax, which will revert from a $ 5 million exemption at a 35 percent tax rate to a $ 1 million exemption with a top tax rate of 55 percent. This could impact one out of every 10 farms and make it almost impossible for young farmers to carry on their family operations.
The capital gains tax rate will also increase come Jan. 1, from 15 percent to 20 percent. This, too, will greatly impact farmers. Because capital gains taxes are imposed when buildings and farmland are typically sold or
transferred to new or expanding farmers, it will become more difficult for farmers to shed their assets or upgrade their businesses.
Congress has a lot on its holiday plate during the next several weeks. By the way, did I mention that we still don’ t have a farm bill? But, that’ s a topic for another day, maybe over eggnog...
Until then, have a happy and safe holiday season.
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