The National Cattlemen’s Beef Association (NCBA) has announced they strongly support new legislation introduced by U.S. Representatives Jimmy Panetta of California and Jackie Walorski from Indiana. NCBA notes the “Preserving Family Farms Act of 2019” is important bipartisan legislation that would expand IRS Code Section 2032A to allow more farmers and ranchers to take advantage of the special use valuation and protect family-owned businesses from the devastating impact of the death tax.
In a release, NCBA President Jennifer Houston said ranchers and farmers are very appreciative of the death tax relief that was passed as part of the Tax Cuts and Jobs Act of 2017 (TCJA), but that many cattle producers are either still vulnerable to the death tax or will be vulnerable when the TCJA exemption limits revert back in 2026.
Houston said, “America’s beef producers should never be forced to sell any of their family’s farm, ranch or business due to a death of a family member”, and that “NCBA is committed to the fight to defend family ranches and farms and has long advocated for sound policies that will preserve family-owned beef operations for generations to come.”
The Preserving Family Farms Act of 2019 increases the maximum amount allowed under the exemption from $750,000 to $11 million (indexed for inflation). If enacted, this legislation will provide a permanent solution to an issue that has long plagued our nation’s cattle producers.