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A small-business tax package is moving through Congress that could offer a number of important benefits to Ohio farmers. "The Small Business and Farm Economic Recovery Act of 2002" would save small business and agriculture taxpayers about $14 billion during 10 years. Because the bill is offset (paid for by increasing other taxes), it would only require a simple majority to pass the Senate.

Farm Bureau supports the bill because it contains several provisions that Farm Bureau policy supports.

The bill creates Farm, Fish and Ranch Risk Management Accounts (FFARRM Accounts) that will allow producers to defer income taxes on 20 percent of their net farm income for up to five years when income is kept in a FFARRM Account. This should save agricultural producers $1.2 billion in taxes over 10 years.

Also in the bill is an exclusion of farm rental income from self-employment taxes, worth $30 million in tax savings over 10 years.

Other components of the bill include an exclusion of Conservation Reserve Payments (CRP) from self-employment taxes, an extension of income averaging to fishermen, a provision that income averaging not trigger the Alternative Minimum Tax and a provision for tax relief to farmers and ranchers who are forced to sell livestock due to weather related conditions.

Another part of the bill provides tax credits for providers of broadband to provide services in rural and underserved areas.