Bacus Stresses Importance Of Estate Tax Exemption

The farming community is concerned that the enhanced estate tax exemption could be a major casualty if the 2017 tax cut law expiring at the end of next year isn’t extended.  The estate tax exemption will drop from $13.6 million per individual to its pre-2017 level of $5.5 million if the Tax Cuts and Jobs Act isn’t extended.

“If we do see the ‘death tax’ limits revert back to those pre-2017 levels, then that’s going to affect about 61% of our survey respondents," noted the National Cattlemen’s Kent Bacus.  "And that is not something that we take lightly.”

Especially, he added,  since many producers complain they’ve already been hit by the estate tax.  Bacus said a third of farmers have already had to pay the ‘death tax’ once, and from that number, another 35% have had to pay it more than once.  He went on to say that many operations are asset-rich and cash-poor, thanks primarily to land values.

“As those values go up, whether it’s pastureland or farmland or just demand for development, real estate development for farmland is always a constant pressure. So, it’s not just that we’ve been setting record values on cattle prices and everything else, it’s just that land values have gone up.”

Bacus concludes any increase in land value does not mean there’s an increase in cash flow.  Producers, he added,  would rather have more in their pocket than pay more in taxes.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com