New Tax Changes Could Hit Farms Hard, Says Texas A&M Study

Dramatically increased taxes for farmers could be on the horizon. Two bills which are now moving through the U.S. House and Senate, would eliminate stepped-up tax basis upon death of the farm or ranch owner (Sensible Taxation and Equity Promotion Act) and decrease the estate tax exemption (For the 99.5% Act) if passed. A new study conducted by Texas A&M’s Agricultural and Food Policy Center using 94 farms in 30 states found that if both bills pass, 92 of 94 farms would be impacted. Each of those 92 farms would gain an average of $1.43 million in tax responsibilities per year. See more facts from the study.