Rehberg Sponsors Legislation to Help Young Ag Producers
Montana's Congressman, Denny Rehberg, this week sponsored legislation which would give young producers, faced with increasing land prices, a leg-up when starting in production agriculture by providing tax exemptions to current producers for selling their acreage to young farmers and ranchers.
"The next generation of farmers and ranchers face a tough task in trying to compete with high land prices," said Rehberg, a member of the House Appropriations Committee. "In many parts of the country, availability of land is one of the biggest challenges preventing young producers from starting or expanding their operations. This bill would encourage landowners to keep land in ag production and ensure a strong ag economy for the future."
The Beginning Farmers and Ranchers Act would provide:
· A 100% exemption from capital gains taxes for those who sell their farm or ranch to a qualified beginning producer. This full exemption helps level the playing field for younger producers, who must often compete against large, established producers, as well as developers who can afford to offer higher prices for land.
· A 50% exemption for those who sell their farm or ranch to any producer who keeps the acres in agricultural production. This provision helps ensure adequate agricultural production at a time when landowners are pressured to sell their land for purposes other than agriculture.
· A 25% exemption for anyone selling a farm or ranch, regardless to whom they sell or for what purpose. This provision gives land-owning farmers and ranchers parity with home owners, who were granted substantial capital gains tax relief in 1997 for the sale of their homes.