12.5 Tax Provisions Affecting Agriculture
The economic future of our nation's agriculture depends on the ability of new generations to enter farming and ranching. The barriers faced by the next generation are significant, and merit immediate attention by policy makers. NASDA supports tax incentives and capital gains exclusion for selling to first time farm/ranch buyers.
As a means to enable producers to survive periods of low profitability, farm savings accounts should be created to level out income flows. NASDA recommends Congress establish Farm Savings and Retirement Accounts as a necessary management tool for U.S. farmers and ranchers.
American farmers and ranchers incur significant costs in providing medical insurance coverage for themselves, their families, and employees. NASDA recommends that Congress provide a 100% income tax medical deduction for farmers and ranchers, including all health insurance premiums and medical surgery for self, immediate family, dependents and employees. Prescriptions, Medicare and medical supplies should also be tax deductible.
NASDA also supports elimination of the self-employment tax on income from rent of farmland, including CRP rents. Further, NASDA recommends that farmers who have gross income of $2,400 or less be able to report $1,600 as net earnings from farm self-employment.