But not all organizations are in favor of the legislation
By Diego Flammini
News Reporter
Farms.com
American farm organizations are voicing their opinions after the House of Representatives passed legislation that could have significant impacts on farmers.
The House passed the Tax Cuts and Jobs Act on Thursday, which includes the repeal and eventual end of the estate tax.
There is currently a lifetime state exemption of about $5.5 million per individual and $11 million per married couple, Matt Van Essen, a partner with Van Bruggen & Vande Vegte, an Iowa-based agricultural accounting and tax firm, told Farms.com in September.
The House legislation doubles the exemption until 2024 before eventually phasing out the estate tax altogether.
And that increased amount is good news, says several farm organizations.
"The House bill overall would be good news for farmers," Brennis Craddock, director of Farmers Service, Inc. with the Tennessee Farm Bureau, told Farms.com today. "Our farmers have been looking for (an estate tax) repeal for a long time. It allows for a continuation of family farming without any risk associated with the estate tax."
The increased estate tax amounts can also help with succession planning, according to Adam Dietrich, a member of the Michigan Farm Bureau State Young Farmer Committee.
Dietrich attended the bill’s passage with members of the Michigan Farm Bureau and is encouraged by what the legislation can do for future farmers.
“As a young farmer, the tax plans that are being pushed right now could really impact us when we’re trying to look forward to structuring our businesses for family succession planning and tax planning,” he said in a Michigan Farm Bureau video after the bill passed.
But not all farmers are happy about the House’s decision to pass the bill.
The passing of the Tax Cuts and Jobs Act could mean family farmers end up paying more taxes, according to the National Farmers Union (NFU).
“The policies put forth by this bill would increase the tax burden on family farmers and the middle class, and they add a massive $1.5 trillion to our national deficit,” Rob Larew, NFU senior vice president of public policy and communications, said in a Nov. 16 release, adding the bill could jeopardize the Farm Bill.
The bill still needs to be passed in the Senate and signed by the President before it becomes law.