The Save the Family Farm and Ranch Act was reintroduced in senate by Representative John Salazar, D-Colo. It was first introduced in April 2007 and would defer payment of estate tax on family farms if the land is used for any agriculture or conservation purposes.
According to Salazar many people inherit farms but have to sell them because they cannot afford the taxes. Salazar told Farm Futures, “Our intention is by removing that and utilizing the IRS definition of a family farm; they would then be allowed to defer the death tax until the time the person would decide to sell it for development or something else.”
The Internal Revenue Service (IRS) determines land a farm if it derives at least 50 percent of the gross income from farming. The current inheritance tax rate is at 45 percent after $2 million. Land value often easily exceeds $2 million.
The Save the Family Farm and Ranch Act would save farms and some agricultural. It keeps farms in families as well. It prevents farmland from being developed into commercial property.
“I think there’s great interest in doing this,” Salazar said. “There are a lot of people that are very concerned about the open space and our ability to provide food not only for this country but the world.”
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