By Jamie Martin
As tax season approaches, farmers and ranchers face uncertainty over expiring tax provisions that support agricultural businesses. Without congressional action, these changes could lead to billions in tax increases for farm families.
For many farmers, financial planning is just as crucial as planting. However, several key tax provisions that benefit rural businesses will expire by the end of the year, leading to higher tax burdens. Lawmakers have promised to address this issue, but action is needed to ensure farms remain financially sustainable.
Among the provisions at risk are:
- Reduced pass-through tax rates and expanded brackets
- 20% business income deduction (199A)
- Unlimited bonus depreciation
- Doubled estate tax exemption ($11 million per person, $22 million per couple)
- Increased Alternative Minimum Tax threshold
"Farm and ranch families want to plan not only for the next season, but also for the next generation."
These provisions help farmers navigate financial challenges such as rising costs, inflation, and fluctuating markets. Without them, tax liabilities could rise by $4.5 billion for farm households, making it even harder for young farmers to enter the industry.
At a time when the average farmer is nearing retirement, the ability to transfer farms to the next generation is critical. Farmers and advocates continue to push lawmakers to make these tax benefits permanent, ensuring economic stability in the agriculture sector.
Farm organizations are working to secure tax reforms that protect rural businesses. As tax season unfolds, farmers and ranchers urge Congress to act quickly before these crucial provisions disappear.
Photo Credit: pexels-nataliya-vaitkevich
Categories: National