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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