Tax cuts support farmers, ranchers

By U.S. Sen. Pete Ricketts
R-Nebraska

Agriculture is the heart and soul of what we do in Nebraska. Family farms and ranches are the backbone of our communities. But times in farm country are tough. High input costs and low commodity prices are keeping our farmers up at night. That’s why I’m fighting to keep more money in the pockets of Nebraska farmers and ranchers.

The Farm Bureau reports Nebraska farm bankruptcies were up 29% last year.  But this statistic doesn’t tell the whole story. For Nebraskans, agriculture is a proud generational business. Our farms and ranches are passed down through families who have poured blood, sweat, and tears into their ground and livestock.  Many would rather leave the agriculture industry altogether than give their operations up through bankruptcy.

In Nebraska, I have heard directly from farmers and ranchers about policies needed to support farm country.  

Last month, I hosted an ag roundtable with Representative Adrian Smith in Hastings. This week, I will host another in West Point with Senate Agriculture Committee Chairman, Senator John Boozman of Arkansas.

Having Chairman Boozman in our state to celebrate Nebraska ag is important for our farmers. Chairman Boozman and I will share our work on the Farm Bill, renewable fuels, and how the Working Families Tax Cuts will strengthen Nebraskans. It gives us a chance to discuss policies that strengthen Nebraska agriculture.

The Senate is working hard on the Farm Bill, and Chairman Boozman is leading this effort. The House Agriculture Committee just passed their bipartisan Farm Bill out of committee last week. It includes Nebraska priorities that will strengthen the agriculture industry. It expands investment in rural communities, restores regulatory certainty, and strengthens risk management tools.  Among these other policies, Chairman Boozman and I will keep fighting for year-round E15.

During these meetings, I am also sharing how the Working Families Tax Cuts will benefit ag families. CBS reports average tax refunds will increase by $1,000 this year, thanks to the Working Families Tax Cuts. That is a house payment. Or that’s money that families can put toward groceries and utilities.

The Working Families Tax Cuts helps Nebraska producers grow and reinvest.  Full expensing is now permanent for property like tractors and other heavy machinery. A corn grower in Custer County will be able to fully write off a new, more efficient combine.  Another provision in the bill boosts expensing for tools and equipment. This helps small businesses from welders to seed dealers invest and improve productivity.

Nebraska is a biofuels state. Nebraska is second in the nation for ethanol production. We have 25 ethanol plants that employ over 1,300 Nebraskans.  

The Working Families Tax Cuts unleashes Nebraska’s power to fuel the world.  Senate Republicans extended the 45Z clean fuel credit to ag and ethanol producers. This credit raises demand for agricultural feedstocks. The 45Z credit will support domestic biofuel production. In turn, that means more investment and better prices for farmers.

The Working Families Tax Cuts supports the next generation of ag leaders. Whether taking over the family business or starting their own operation, we encourage young Nebraskans to enter the ag industry. That’s why we strengthened the Beginning Farmer and Rancher Development Benefit. We extended its coverage from five years to ten years. That gives new producers access to critical risk management tools for longer.

We also expanded and made permanent the Death Tax exemption. 80% of Nebraska farms are family owned. They should stay that way.  By making the death tax exemption permanent, we’re given family-owned farms and ranches more certainty. Now, $200 billion in hard-earned family farm assets across the country will go to the next generation, not the government.

Nebraska’s future depends on farmers, ranchers, and agri-business. The Working Families Tax Cuts supports agriculture today and protects the next generation of farmers and ranchers. That is how we keep supporting the Good Life.

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