Earlier this week, Ohio Farm Bureau President Bill Patterson wrote a letter to Ohio’s congressional delegation, reiterating Farm Bureau’s significant concern for certain tax proposals being considered that would hurt family farms. The letter also emphasized that revenue for this new massive spending package should not be raised on the backs of Ohio’s small businesses and farms.
“We remain adamantly opposed to repealing the step-up in basis and to imposing new capital gains taxes on family farms at inheritance. Any reduction of the current estate tax exemption also presents a tremendous threat to agriculture here in Ohio,” Patterson said.
“Each of these proposals, if implemented, could set back Ohio agriculture for generations to come.”
Patterson’s letter also stressed that eliminating key business tax provisions can have very detrimental impacts on Ohio farms. For example, eliminating the Section 199A business income deduction will hurt businesses organized as pass-through entities. A majority of farms in Ohio are organized this way. Similarly, maintaining like-kind exchanges helps farms enhance efficiencies, maintain cash flows and allows for reinvestment in farm operations.
“As the economic backbone of nearly every county and rural community across Ohio, the importance of agriculture and related industries cannot be overstated. As you consider these tax policies please keep in mind farmers and family-owned agricultural businesses are responsible for producing the safe, affordable and abundant food, fiber and fuel supplies we need every day.”