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Care Act of 2003
The U.S. Senate has passed the CARE Act (S.B. 476), which contains $12.3 billion in tax relief designed to increase charitable giving. The legislation increases tax deductions for farmers and ranchers who donate their commodities to food banks, regardless of how their farming business is organized. The CARE Act also encourages farmland preservation by giving landowners a partial exclusion from capital gains taxes if they sell conservation easements or sell land to an entity that will keep the land in conservation use.

The American Farm Bureau Federation (AFBF) applauded the Senate for its passage of the legislation "Supply is not the problem, but making sure that a share of the food we produce makes it to those less fortunate is a worthy goal of everyone involved in agriculture," said AFBF President Bob Stallman. He added, "It just makes sense to encourage these types of activities, and at the same time put more money back into farmers' pockets."

Another benefit the CARE Act provides is a tax deduction for landowners who voluntarily restore wetlands and other wildlife habitats. Under the Partners for Fish and Wildlife program, private landowners receive technical and financial assistance in habitat restoration. The CARE Act would exempt federal cost-share money from the program.

AFBF favors this part of the CARE Act as well. According to Stallman, "As America's farmland continues to be gobbled up by urban sprawl, voluntary conservation easements have become a popular preservation tool. Farm Bureau believes this tax code change would encourage more landowners to take action to preserve farmland. Rewarding landowners who choose to voluntarily protect habitat is a much better approach than the mandatory programs that restrict land uses, without compensation to the landowner."

CRP sign up under way
The Farm Service Agency is holding the 26^th sign up for the conservation reserve program (CRP). The entry period began May 5 and runs through May 30. This is the first general CRP sign up since enactment of the 2002 Farm Bill. The last general sign up was held in early 2000.

Eligible producers must have owned or operated the land for at least 12 months or meet other eligibility requirements. The land must be cropland that was farmed four years between 1996 and 2001 or be CRP acreage with contracts expiring Sept. 30, 2003 or 2004. The land must have a weighted average erosion index of 8 or higher. Offers for this round will be ranked according to the Environmental Benefits Index. Accepted offers will have rental rates based on the relative productivity of the land and the average cash rent in the area.

For more details on the CRP program and provisions specific to round 26, visit the Ohio Farm Bureau Web site at www.ofbf.org. Click on "Featured Links" and CRP Rules.