Farm Bureau: Removing Stepped-Up Basis Would Make It Hard For Next Generation Of Farmers

The American Farm Bureau Federation continues to remind lawmakers, and the general population that proposals to eliminate stepped-up basis would have devastating consequences to farmers and ranchers. Farm Bureau member Mike Brundige, a 4th generation farmer from Tennessee, said eliminating the stepped-up basis would prevent him from passing his farm on to the 5th generation.

“Our main goal is to keep the land in the family. Elimination of stepped-up basis would certainly lower the amount of our assets that we are able to pass on to our children. There’s no reason in having them accountable for taxes that accrued on it for forty or fifty years before.”

Brundige said the average American would be surprised just how many people would be impacted if the stepped-up basis was eliminated. He added agriculture would be one of the hardest hit sectors, since most farmers own land but don’t have the money to pay increased taxes.

“When you get into these questions about taxing any kind of wealth, especially at death, in my opinion it doesn’t matter where the rates are, there should be no tax applied anyways because that has all been taxed before. People think of it just being for people that are ultra-wealthy, but it’s not. It’s going to be a lot of just everyday people that maybe aren’t expecting it.”

Brundige said the current tax laws, especially since the 2017 revisions, allow farmers to grow their business with the goal of passing the farm to the next generation.

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