Ninety-eight percent of the more than 2 million farms and ranches in the United States are family farms. These family farms produce 86% of the value of the food, fiber and renewable fuels that power the U.S. economy and help address food insecurity around the world. Everyone agrees that when U.S. farmers succeed, America succeeds.
Why then are the hardworking families that own and operate farm and ranch businesses being told to shoulder the burden for the American Families Plan’s massive $1.8 trillion price tag?
To pay for this plan, President Joe Biden has proposed changes to the tax code, including increasing capital gains tax rates, increasing taxes on appreciated assets like farmland and limiting the use of like-kind exchanges. The next generation of family farmers will face devastating consequences if the president has his way, as his proposed changes put the future of nearly 2 million family-owned farm operations at risk.
Agricultural farmland values have increased by an average of more than 360%, or nearly $2,500 per acre, since 1990. That means farmers and ranchers likely would face steep capital gains taxes upon the sale of an inherited