Cattle Industry Support Letter For One Big Beautiful Bill
The National Cattlemen’s Beef Association (NCBA) and its state affiliates sent a letter to Senate Majority Leader John Thune, Senate Majority Whip John Barrasso, and Senate Finance Committee Chairman Mike Crapo urging passage of the “One Big Beautiful Bill.”
Key Excerpts:
“Renewing the expiring 2017 tax policies is essential for the success of our family-owned cattle operations and bolstering producer profitability across rural America. Time is of the essence, and we encourage swift passage of the tax package.”
“We are very supportive of the proposed increase in the estate and gift tax exemption of $15 million. The estate tax, or death tax, is one of the greatest threats to multi-generational cattle operations. Cattle producers are asset rich and cash poor, and families are often forced to sell off part of their land or livestock to pay the estate tax. Taking land and livestock out of production significantly hurts producer profitability.”
“Family-owned cattle operations are a major economic driver across rural America, but they need a tax code that rewards their entrepreneurial spirit and encourages the continuation of multi-generational small businesses.”
Initiated in 1898, NCBA is the national trade association representing America’s cattle farmers and ranchers.
Please see below for a copy of the letter.
Dear Senators Thune, Barrasso, and Crapo:
The National Cattlemen’s Beef Association (NCBA) and our affiliates write to you in strong support of the tax package that was recently proposed by the Senate Finance Committee. NCBA is the oldest and largest national trade association representing the interests of the U.S. cattle industry, with over 178,000 members represented through direct membership and our 44 state affiliate organizations. Renewing the expiring 2017 tax policies is essential for the success of our family-owned cattle operations and bolstering producer profitability across rural America. Time is of the essence, and we encourage swift passage of the tax package.
Most notably, we are very supportive of the proposed increase in the estate and gift tax exemption of $15 million. The estate tax, or death tax, is one of the greatest threats to multi-generational cattle operations. Cattle producers are asset rich and cash poor, and families are often forced to sell off part of their land or livestock to pay the estate tax. Taking land and livestock out of production significantly hurts producer profitability. NCBA strongly supports the complete repeal of the estate tax, and until such repeal is achieved, we support your efforts to secure the highest possible estate tax exemption.
We also greatly appreciate the permanence of the Section 199A Small Business deduction included in the text. Section 199A was established to ensure that pass-through businesses could compete on an equal footing with corporations following the reduction of the corporate tax rate. Cattle producers, many of which are structured as pass-through businesses, will face a tax increase if the deduction is allowed to expire. Permanent extension of 199A empowers cattle producers to make thoughtful planning decisions for the future without worrying if they will face a tax increase down the line.
Cattle operations require significant investments in machinery, equipment, and other depreciable assets and because of this, farmers and ranchers place great value on tax code provisions such as the Section 179 deduction. NCBA is supportive of the proposed increase of the Section 179 limitation from $1 million to $2.5 million. This increase is long overdue, and it will greatly help cattle producers make capital investments in their businesses as the cost of equipment and machinery continues to rise.
NCBA also strongly supports the committee’s proposal to permanently reinstate 100% bonus depreciation. When capital investments exceed Section 179 deduction limits, farmers and ranchers generally use bonus depreciation. For several years, producers have not been able to deduct the full cost of business purchases in the first year. Reinstating this important tool will give producers more flexibility to make investments and reduce their tax burden.
Family-owned cattle operations are a major economic driver across rural America, but they need a tax code that rewards their entrepreneurial spirit and encourages the continuation of multi-generational small businesses. We are very pleased with the Senate Finance Committee’s effort to ensure permanency for many provisions that are important to farmers and ranchers. When producers know what to expect, they can confidently make estate and business plans without looking over their shoulder for an unexpected tax bill. These proposals are essential to the continued success of America’s cattle producers. We thank the members of the Senate Finance Committee for their hard work, and we urge swift adoption of the tax package.
Sincerely,
National Cattlemen’s Beef Association