Nebraska Farm Bureau officials worry that if negotiations fail to resolve the "fiscal cliff" issue in Washington, the fallout would have a major impact on farms in Nebraska.
Nebraska Farm Bureau officials worry that if negotiations fail to resolve the "fiscal cliff" issue in Washington, the fallout would have a major impact on farms in Nebraska. Brent Martin reports.
Brent Martin; soc
The Bush-era tax cuts included a big cut in the Estate Tax...cutting it from a million dollar exemption and a 55-percent rate to a 5-point-1 million dollar exemption and a 35-percent rate.
If negotiations in Washington break down, the Estate Tax jumps dramatically, making it more costly for farms to be passed down from one generation to the next. . .
Jordan Dux,Director of National Affairs, Nebraska Farm Bureau; "piece of property"
Jordan Dux, Director of National Affairs for the Nebraska Farm Bureau, says with land prices ranging from 22-Hundred dollars a acre for dry ground up to 8-Thousand dollars an acre for irrigated ground, it wouldn't take a large operation to hit the one million dollar threshold and trigger the 55-percent tax. That, according to Dux, would force heirs to either give up hopes to keep farming their parent's ground or sell off portions to pay the tax.
Nebraska Farm Bureau officials say it will be difficult for Nebraska farmers to hand their farms down to their children if Congress doesn't extend the Bush-era tax cuts.
Farm Bureau Director of National Affairs Jordan Dux says that if the tax cuts expire at the end of the year, the Estate Tax reverts to a one million dollar exemption, then a 55-percent rate.
Dux; "come on the farm"
Dux notes that Nebraska farmland sells for about 22-Hundred dollars an acre for dryland and 8-Thousand dollars an acre for irrigated land...and it wouldn't take that large a farm to be subject to the former Estate Tax rates.
Nebraska Farm Bureau officials warn that an expiration of Bush-era tax cuts could greatly impact farming in Nebraska.
In particular, the Bureau is worried about a jump in the Estate Tax. It currently has a 5-Million dollar exemption and a 35-percent rate. The old rate is 55-percent with only a one million dollar exemption.
Jordan Dux with the Farm Bureau says that with dryland in Nebraska selling for 22-Hundred dollars an acre and irrigated land selling for 8-Thousand dollars an acre, it wouldn't take much to hit the old rate.
Dux; "cash on hand"
Dux says the old rate could force farm families to sell to corporate farms rather than pass farms on to heirs.
Nebraska Farm Bureau officials say the expiration of Bush-era tax cuts could drastically affect farming in Nebraska.
If the tax cuts expire, the Estate Tax would jump from 35-percent to 55-percent, with the exemption falling from 5-Million dollars to one million dollars
Jordan Dux with the Bureau says if the old Estate Tax rates go back into effect, it will be difficult for farmers to leave their farms to their children. . .
Dux; "120 acres"
Dux says the old rates could force families to either sell portions of the land to pay the tax or give up inheriting it altogether.
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(courtesy of Nebraska Radio Network)