U.S. Senator Mike Crapo announced on Mar. 24 that the Working Families Tax Cuts law is providing new support for farmers and ranchers in Idaho and across the country. The announcement coincides with National Agriculture Day, which recognizes the contributions of agriculture to communities nationwide.
The new tax policies are designed to help farm families maintain stable operations by offering greater certainty about federal tax and agricultural policy. This comes as many producers face challenges related to costs, access to capital, and generational transfer of family farms.
Crapo said, “Agriculture is the cornerstone of Idaho’s economy, accounting for 20 percent of our gross state product. Providing certainty in our tax code, while extending and enhancing other pro-growth provisions, will make it easier for producers to access the capital they need to buy new equipment and weather lean years and ensure family farms can be passed down for generations to come.”
Key features of the law include a permanent doubling of the death tax exemption so family farms can remain within families; restoration of full expensing for new farm equipment; a permanent small business deduction claimed by hundreds of thousands of farm operators; deferral options for capital gains taxes on farmer-to-farmer land transfers; and provisions allowing banks to exclude some interest income from farm loans, making financing more affordable. The law also extends safety net programs and supports investments in agricultural research.
Jolene Riessen, an Iowa farmer, said: “My first thought is, if you like to eat, you will help us with this… When you buy that piece of equipment, you’re expected to pay it off in three to seven years. That’s usually what the finance is at. Those are pretty hefty bills that come to play. Being able to use that 100 percent depreciation, it freed up money so I can make those payments.” Cathy Burns, President and CEO of International Fresh Produce Association added: “The extension of the tax provisions are a lifeline for American farmers… If you think about all the headwinds that American farmers are experiencing—between labor, increasing costs, access to markets—the extension of these provisions provide much needed relief.”
Crapo serves as chair of the Senate Committee on Finance according to his official website. He has advocated for responsible forest management and natural resource protection according to his official website, served three terms representing Idaho’s Second Congressional District in the U.S. House according to his official website, grew up in Idaho Falls with five children raised alongside his wife Susan according to his official website, earned degrees from Brigham Young University (bachelor’s) and Harvard Law School (Juris Doctor) according to his official website, assists Idahoans with federal agencies as well as service academy nominations according to his official website.
Observers note these measures could have lasting impacts by strengthening rural economies through increased investment capacity among farming families.
