LAFAYETTE, IN – According to Dr. Jim Mintert, Director of the Center for Commercial Agriculture at Purdue University, producers remain very concerned about possible changes to U.S. tax policy.
Dr. Mintert is lead author for the monthly Purdue University/CME Group Ag Economy Barometer where more than 75 percent of the 400 producers surveyed agreed that changes in tax policy being considered would make transitioning the farm to the next generation more difficult.
Some of the major tax concerns producers seem to have is with changes in capital gains (83 percent), the possible loss of the step-up in cost basis (71 percent) and a possible reduction in the sales tax exemption for inherited estates (66 percent).
Despite the concerns, producers do remain bullish on farmland values as two-thirds of respondents say they expect values to increase over the next five years.
Short-term expectations for farmland values slipped slightly from an all-time record in April, but still remain near historic highs.
(SOURCE: All Ag News)