ENFIELD, CONN.,TUESDAY, AUGUST 22, 2017 — Farm Credit East recently released a report that provides an overview of federal tax provisions relating to agriculture, with a focus on key existing tax policies that impact Northeast producers. This report will be shared with members of Congress as they begin consideration of tax reform legislation.
Key issues addressed in this report include:
- Variability of farm income: The unpredictable market and growing conditions for agriculture, coupled with the seasonality of income and production, require unique reporting and tax requirements.
- Incentives for investing: Farm businesses are capital intensive, so there are several provisions that deal with tax treatment of funds invested in a farm business.
- Sale and transfer of assets: Farm businesses are also asset intensive, and with the buying and selling of assets, such as land, equipment and buildings, comes tax consequences.
This informational report provides examples of current tax provisions that are important to Northeast farm businesses. It will be provided to Congressional offices as background to consider as tax reform proposals are developed.
To view the full report, Federal Tax Provisions Relating to Agriculture: A Northeast Perspective, with more detail on each of these policies, click here or visit FarmCreditEast.com.